Client Results - Healthcare
Beecher Carlson Forms Captive for XLHealth
Projected Savings of $2 Million in 2008
XLHealth is a Disease Management company in Baltimore. Prior to 2005, XL had contracted their services to other health plans, managing the health plan members in return for a fee. Recent federal Medicare law changes allowed XL to start their own plans focused solely on members with certain disease states, i.e. diabetes, congestive heart failure and so on.In 2005, XL started its own health plan in Maryland, followed by health plans in five other states. These plans grew dramatically in 2007. XL is required to show excess loss and insolvency coverage to state regulators. However, because of the recent laws creating these types of health plans, the commercial markets were over-pricing excess loss coverage for XL.
Beecher Carlson suggested a captive solution which we formed in 90 days.
The results: based on de-leveraging the premium and reducing expenses alone, we will help XL save over $2,000,000 in 2008. In addition, we fully expect the captive to earn an underwriting profit.
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