The COVID-19 pandemic has changed health care in many ways, with those changes increasing employers’ consideration of captive insurance stop-loss arrangements.

Rising healthcare costs had employers moving to place stop-loss coverage in captives even before the pandemic, said Karin Landry, managing partner at Spring Consulting Group LLC. Now, with changes in healthcare delivery driven by the pandemic and shifting employee demographics, that trend is increasing.

“Probably more than any other line of coverage in the last several years, we’ve seen clients asking about ways to mitigate their financial burden with regards to health care, and captives can certainly play a good role with regards to mitigating costs,” Ms. Landry said.

She offered her thoughts as part of a Captive Insurance Companies Association (CICA) 2021 Digital Education Series webinar titled “Taking Your Medical Stop-Loss to the Next Level.”

Ms. Landry noted that employer medical plans pay 140 percent to 220 percent or more of what Medicare pays for healthcare services, even up to 500 percent for certain services. “So that continues to drive the healthcare cost that we see in the marketplace today,” she said.