Auto dealerships are under increasing pressure from rising healthcare costs, unpredictable renewals and little visibility into where their benefit dollars are actually going. There is a solution to these problems. Has your dealership considered a medical captive?

Medical stop loss group captives can offer a smarter, more strategic alternative — combining the flexibility of self-funding with the protection of shared risk. Whether you operate a single rooftop or a multi-location group, this model allows you to design a benefits plan around your workforce, with control over deductibles, networks, TPAs and pharmacy programs — without being locked into a one-size-fits-all fully insured plan.

What makes captives especially powerful is the shift from being a passive buyer of insurance to an active participant in your financial outcome. Dealerships in captives can benefit from:

• Stabilized Costs: Reduce renewal volatility and avoid constant carrier changes 
• Profit Retention: Potential to earn back unused underwriting dollars as dividends
• Full Transparency: Clear insight into claims, cost drivers, and where your money is going 
• Data-Driven Decisions: Ability to evaluate vendor performance and optimize your plan 
• Custom Cost Management: Tailor networks, PBMs and plan design to your specific workforce 
• Collaborative Advantage: Learn and share best practices with other high-performing companies

Dealerships that continue to rely on traditional insurance can remain stuck, reacting to annual increases. Captives can allow you to gain control, improve outcomes and position your benefits program as a financial advantage instead of a fixed expense. 

The question is: Have you explored whether a medical stop loss captive is the right fit for your dealership?

Would you like to see a comparison of how captive insurance differs from traditional self-funding? Partnering with an experienced broker who is well-versed in the unique dealership industry is indispensable. If you would like more information on captives, Alison McCallum of EPIC will provide details to GLANCDA members at no cost.