Blackwell Captive Solutions
Kari L. Niblack, Esq. talks to CIT about Blackwell Captive Solutions’ offering and the company’s contribution to the field of medical stop-loss insurance captives
Can you provide an overview of Blackwell Captive Solutions and its mission in the field of medical stop-loss insurance captives?
Blackwell Captive Solutions (Blackwell) was founded on the premise of providing a single-source, turn-key employee healthcare solution. This solution is for businesses seeking innovative alternative risk management solutions for their employee healthcare programmes. In essence, it spreads risk across a captive layer ensuring that premiums are more affordable, more transparent and less volatile year-on-year.
Our team has more than 80 years’ combined experience paired with a “nothing to lose” attitude. We fully understand the many complexities within the healthcare marketplace. We still enjoy guiding business owners to the vast alternatives to fully-insured medical programmes.
What distinguishes Blackwell Captive Solutions in terms of its approach to cost containment and flexibility?
Blackwell seeks to change the industry by giving clients more transparency than ever. Domiciled in South Carolina, it offers two distinct treaty dates and allows a Letter of Credit for collateral. It also empowers clients to choose the exact combination of cost-containment solutions that best meet their individual needs.
We position clients in the driver’s seat as an active participant in their plan performance.
Our clients have the potential to earn a return of up to 50 per cent of their premium via their experience-rated refund which begins in year one — this distinguishes us from other captive solutions. There is no multi-year wait or murky reconciliation process. To say we embrace the motto, ‘Essential Stability. Desired Flexibility,’ is an understatement!
Could you elaborate on the types of industries that Blackwell welcomes as clients and what criteria is considered when targeting health plans with a range of member lives?
Blackwell welcomes all industries. We price favourably for midsize employers, from 50 – 1500 lives. We pride ourselves on solving the healthcare puzzle. We customise our solution based upon each individual client’s business and financial needs.
This is opposed to forcing clients to simply purchase a non-negotiable solution via a narrow selection of brokers. All consultants and all clients are welcome to pull up a chair, roll up their sleeves and strategise beside us.
The door is open, coffee is hot. Everyone is welcomed at the Blackwell table.
Blackwell Captive Solutions emphasises tax reduction and carrier profits as part of its offering. Can you explain how this strategy benefits clients, even if their claims spend remains unchanged?
Clients must be self-funded to participate in a group insurance captive. Being self-funded eliminates some insurance carrier and state-mandated costs like carrier risk charges, state premium taxes and state mandates.
Furthermore, a captive is allowed to take a federal tax deduction for unpaid amounts on retained risks, also known as reserves. Whereas, a self-insurer can only take deductions for paid amounts on retained risks. It’s all about cash flow and the investment income earned on this accelerated tax deduction.
“Cutting-edge solutions: Where buying power meets tailoring freedom” is one of your key messages. Can you provide examples of innovative solutions that clients can opt into and how these solutions contribute to cost savings and member health improvement?
Today’s customers expect a highly personalised experience — the essence of self-funding. When executed well, these experiences can drive long-term client engagement and loyalty, which allows us to differentiate from other captives and to subsequently gain a sustainable competitive advantage.
For example, our clients can opt for Liviniti, a channel partner and pharmacy benefit manager (PBM), a solution based upon transparency, affordability, quality, service and innovation.
This PBM partnership saved a new Blackwell client in Ohio over US$155,000 in prescription lasers, versus the incumbent.
Your company takes inspiration from Elizabeth Blackwell, a pioneering figure who challenged the status quo. How does this spirit of innovation influence Blackwell Captive Solutions’ approach to serving clients in the insurance industry?
Innovation is a cornerstone of our company. Our bedrock belief in innovation and charting a new path is why we named the company after Dr Elizabeth Blackwell, the first woman to attend medical school in the US.
We take inspiration from Dr Blackwell’s trailblazing efforts to challenge the status quo and bring new perspectives and ideas to a profession stunted by adherence to tradition. We know, as Dr Blackwell knew, that there is a better way forward — a path that offers more success by pursuing new ideas, promoted by new participants. Staying nimble and sharing winning solutions amongst clients is a win-win and would make Dr Blackwell proud!
Could you describe the benefits that organisations can expect when they join Blackwell Captive Solutions?
Stop-loss coverage protects your organisation when catastrophic claims arise. However, contract terms and conditions may vary significantly each year. Our team fully understands the value of contract differences and potential policy gaps. It puts safeguards in place to manage high-cost gene therapies. Leveraging these nuances and securing advantageous contract terms for our clients reduces annual trend increases. This results in year-over-year savings to ensure financial stability for those who may not otherwise be able to afford self-funding.
