How One Company Left Conventional Health Plans Behind

In a recent CFO Leadership article, Mike Gilmartin, President and CFO of M. Davis & Sons, and President of one of the Medical Stop Loss (MSL) group captives supported by Captive Resources, shared how his company escaped what he called a “cycle of helplessness” with fully insured health plans.

“Back then,” Gilmartin recalled, “our health plan was fully insured, and the broker would come by and exclaim, ‘You did such a great job managing claims that the premium increase is only in the low double digits!’” Frustrated by rising costs and a lack of transparency, Gilmartin sought alternatives—and found one.

In 2013, M. Davis & Sons joined an MSL group captive supported by Captive Resources. Since then, the company’s annual healthcare premium increases have averaged around 4%, a significant shift from the double-digit increases they once faced.

The article highlights the strategic advantages of the group captive model, including the ability to customize coverage. One example is carving out high-cost organ transplant coverage from the captive’s stop-loss policy, which yielded immediate savings.

“We’ve had two kidney transplant cases with zero cost to the business or the individuals other than the annual premium for the carve-out coverage,” Gilmartin noted.

He also pointed to the captive's collaborative nature. “We share our successes and failures,” he said, referencing workshops and member meetings where participants exchange insights on everything from claims drivers to utilization patterns, such as ER overuse for minor conditions like earaches.

The MSL group captives supported by Captive Resources fall under the firm’s Health Solutions business unit, led by President Steve Gransbury. Since launching a health captive in 2011, the Health Solutions discipline has grown significantly at Captive Resources, today supporting hundreds of employer members nationwide.

Gilmartin’s experience illustrates what’s possible when employers take control of their healthcare strategy—achieving cost stability and a stronger foundation for employee benefits.

Read the full article here.