Seth Denson, Co-Founder of GDP Advisors and market analyst, discusses Insurance Captives, right group sizes, and risk profiles. He also talks about his book 'The Cure' for America's healthcare crisis and the importance of being prepared for opportunities in a career.
Transitioning to self-funded plans requires 90-day prep, understanding captives' complexities.
Captive managers align members' risk sharing, manage pooled risk effectively for optimal outcomes.
Captives benefit employers under 500 lives, pooling risk and managing volatility collectively.
Deep dives
Transitioning to Self-Funding and Captive Solutions
Transitioning from fully insured to self-funded plans, including captives, requires a significant lead time for preparation. Understanding the complexities involved, including setting up captives or joining existing ones, necessitates around 90 days for smooth implementation.
Key Role of Captive Managers
Captive managers play a crucial role in ensuring the pooled risk among members is managed effectively. They serve as the glue that aligns members' objectives and risk sharing within the captive, helping to navigate the financial interests and risk allocation for optimal outcomes.
Captives as Risk Pooling Mechanisms
Captives serve as effective pooling mechanisms for employers under 500 lives, helping them share risk and manage volatility collectively. Understanding the layers and components of captives, such as stop-loss coverage and shared risk, is essential for successful risk management.
Educating on Captives and Self-Funding
Educating clients on captives and self-funding options can be a multi-year process, ensuring clarity on the entrance strategy and exit strategy. Advisors need to guide clients effectively on the right path based on their risk profile and financing needs.
Enthusiasm, Knowledge, and Authenticity in Media Engagement
Engaging in media requires a blend of enthusiasm, knowledge, and authenticity to resonate with audiences. Being ready for unexpected questions and having a genuine thirst for knowledge enables effective communication and impactful engagement across various media platforms.
In this episode, Seth Denson, Co-Founder and CSO of GDP Advisors joined me on the podcast to help explain Insurance Captives. Seth talks about the right size group, the appropriate risk profile to join a captive, as well as the technical mechanics of how they work.
In addition to GDP Advisors, Seth is authored the book "The Cure: A Blueprint for Solving America’s Healthcare Crisis", available where all books are sold. Seth is a regular contributor as a market analyst for Fox News, CNN, OANN, NewsMax and Cheddar, and is one of the most sought after commentators on the healthcare industry.
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