Lower cost than a fully insured plan

- Negotiated lower fees with TPAs
- No hidden broker payments
- Larger group = better pricing, less volatility
- Not paying “profits” on base level of claims

Pooled experience

- The concept of insurance is predicated on the law of large numbers – a larger group
means the claims are more predictable or “credible” for rate pricing purposes

- Claims are “transparent” in setting rates, so clear information available for
plan design and incentives program decision-making, at an affordable scale

Captive

- “Non-profit” insurance collaborative – a clear mission!
- Direct access to reinsurers – transparency, lower costs
- Group manages services, control, and sets reserves
- Potential for future dividends