Connecticut Insurance Department announced Thursday that it has licensed a non-profit captive insurance cooperative comprising several Connecticut municipalities and school districts that aims to give communities greater control of their health insurance costs.
CT Prime, the new cooperative, will be managed by the Capitol Region Education Council (CREC). CREC organized the cooperative to help municipalities who self-insure their employee health insurance.
Towns that self-insure pay their own medical claims up to a certain threshold, but once that is exceeded, the towns have a “stop-loss” insurance policy through a private insurer to pay the rest. CT Prime will now give member towns more bargaining power with private insurers to get better rates.
CT Prime is the 11th captive licensed by the department since Connecticut began licensing captives during Gov. Dannel Malloy’s administration.
“The department is pleased we can help provide the creative solutions that captive insurers offer to businesses and organizations in help managing their bottom line,” Connecticut Insurance Commissioner Katharine L. Wade said.
“We know there is savings in numbers, and forming CT Prime will undoubtedly give municipal and school officials broader purchasing power, an essential tool in managing costs for taxpayers,” said Greg J. Florio, executive director of CREC. “We greatly appreciated the Insurance Department’s expert guidance as we went through the licensing process.”
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