Frequently Asked Questions
Thank you for your interest is CSRRG. Our FAQ page is designed to answer our most Frequently Asked Questions. If you do not see the answer to your question below or would like to get additional information we urge you to contact us by clicking here. In order to streamline the information on our FAQ page it has been divided it in to two sections: Self Funded Health Plan and Carrier Solutions RRG. To jump directly to your prefered heading please simply click on the links below:
Self Funded Health Plan FAQ
Q1. Does Carrier Solutions Risk Retention Group run or operate my self funded group health plan for me?
A1. No, each plan sponsor owns and operates their own self funded health plan with plenty of professional assistance from highly qualified employee benefits practitioners.
Q2. Do I have to set up my own self funded health plan and find people to pay my claims and keep track of everything?
A2. No, the original health plan sponsors of Carrier Solutions RRG have already negotiated deep discounts with the best available self funded health plan service providers. Arrangements have been made with these services providers that no one company could negotiate for itself. Carrier Solutions RRG will also consider reinsuring a self funded health plan that is administered by any qualified administrator. Health plan and reinsurance costs may be higher.
Q3. What if I want to start saving money right away? Do I have to wait until my current health plans anniversary comes around to make these changes?
A3. No, any plan sponsor can make a change any time during the year and the administrator will see to it that everyone gets full credit for any deductibles or coinsurance that may have been satisfied before starting the new self funded health plan program and reinsuring it with CS RRG.
Q4. Can I have my choice of health plan designs?
A4. Yes, Arrangements have been made to offer 4 plan design choices. A Low Deductible PPO, A High Deductible PPO, An HMO Look-a-Like known as an “EPO” or Exclusive Provider Organization, and a High Deductible Health Plan that is designed to work in conjunction with Health Savings Accounts or Health Reimbursement Arrangements. A group may choose to go with a plan design of its own but the costs will be higher if the benefits are richer. Of course, the costs will be lower if the benefits are less rich than one of the 4 design templates already offered. (Separate actuarial charges may apply)
Q5. Do these plans come with Prescription Drug Coverage?
A5. Yes, all plan designs to include Rx coverage. Any group may opt out of this coverage if they wish.
Q6. Does the health plan come with Dental and Vision Coverage?
A6. Yes, at the option of the plan sponsor
Q7. Does the plan come with group term life insurance and accidental death and dismemberment (AD&D) coverages?
A7. Yes, the original health plan sponsors of Carrier Solutions RRG have already negotiated deep discounts with a well known, well established group life insurance company. The plan sponsor has the choice of using the arrangements that have already been made or choosing a vendor of its own.
Q8. Do I have to provide my own COBRA and HIPAA administration?
A8. No, the selected third party administrator will provide all health plan administration services including all required COBRA and HIPAA notifications, billings and reporting.
Q9. Can I combine the health plans of companies with common ownership that currently have separate health plans?
A9. Yes, a business owner may combine commonly owned business health plans and they may be organized as a single self funded health plan and reported separately and in the aggregate.
Q10. Will I get monthly claims reports and billing statements? Can I have them organized by profit or cost center of my companies?
A10. Yes, the selected third party administrator will provide a single source set of monthly reports on fixed cost and claims cost billing and complete utilization reports organized for one or more divisions or sub-groups of the plan sponsor.
Q11, How is day to day communications with Human Resources and plan participants accomplished?
A11. The selected third party administrator will establish a unique web site for each plan sponsor that will provide password protected access to eligibility, enrollment, claims payment and claims status information as well as complete assistance instructions and contact information. Each web site provides user friendly network provider look-up databases as well.
Carrier Solutions Risk Retention Group (CS RRG) - FAQ
Q1. Is Carrier Solutions Risk Retention Group part of Elite Transportation RRG (ETRRG) or the PETRO Trust?
A1. No, Carrier Solutions RRG is a completely separate organization created to exclusively reinsure its owners\self funded health plan sponsors contractual liability to an established self funded health plan.
Q2. Why does this “Association” or “Industry” program work when so many others do not?
A2. The Carrier Solutions Risk Retention Group is owned only by its insureds. It only insures its owners. This guarantees the owner companies that any underwriting surpluses will remain theirs and will never be paid to insurance executives as bonuses or unrelated stockholders as dividends. Finally, the plan sponsor can track every dollar spent on employee benefits. This information can be shared with the plan participants so that both can work together to improve everyone’s health and stabilize health insurance rates.
Q3. If Risk Retention Groups can only be owned by the insureds does that mean that I have to invest in Carrier Solutions Risk Retention Group in order to be insured by it?
A3. Yes, each self funded health plan sponsor that wishes to purchase a contractual liability policy from CS RRG must also make a one time capital investment in CS RRG. A “Subscription Agreement” will be provided to each plan sponsor for review before any investment is made.
Q4. If I own part of Carrier Solutions Risk Retention Group will I get regular updates on the financial status of the company?
A4. Yes, as a shareholder, you will be provided with complete and regular reports on the financial status of Carrier Solutions Risk Retention Group in compliance with all LRRA 1986 Regulations. This has the affect of completing the accounting equation between the self funded health plan and the plan sponsor owned reinsurer.
Q5. I’ve heard that Multiple Employer Welfare Arrangements or MEWA’s and other types of Association or Industry type programs are not legal in all states. Why is the Carrier Solutions RRG program not subject to state regulation?
A5. Carrier Solutions Risk Retention Group is organized in the state of Delaware under the Liability Risk Retention Act of 1986 and is subject to the State of Delaware’s regulations regarding all Risk Retention Groups licensed there. This law and its regulations allow CS RRG to operate with federal preemption of all other state laws. Some states do require CS RRG to register as a foreign state domiciled Risk Retention Group. The self funded health plans operated by each plan sponsor independently of one another operate under the Employee Retirement and Income Security Act which is better known as ERISA. Under ERISA self funded health plans also enjoy federal preemption of state laws. This structure ensures that there is never any pooling of assets at the health plan level and that the program is never considered a fully insured health plan which would be subject to much more costly operational expenses.
Q6. What if I can’t get the claims experience for my current employee benefit plan?
A6. Carrier Solutions Risk Retention Group employs professional medical underwriters that will underwrite each case on either an experience rated basis or medical underwriting basis. See Taking the First Steps
Q7. How does Carrier Solutions Risk Retention Group protect itself from catastrophic claims?
A7. CS RRG issues a contractual liability policy that covers both specific and aggregate claims which caps the liability each plan sponsor faces when it chooses to self fund its employee health benefit plan. CS RRG retains only a portion of the total risk and reinsures itself by purchasing both specific and aggregate coverage from a commercial reinsurer. As CS RRGs surpluses grow it will assume more and more of the total risk and pay less and less in reinsurance costs. This will have the long term effect of retaining the maximum amount of funds available to pay for the care of the member companies of CS RRG self funded health plan participants.
Q8. Can I choose the deductible for my self funded health plan?
A8. Yes, CS RRG offers $25,000, $50,000, $75,000 and $100,000 Specific Deductibles as well Aggregate Protection.
Q9. What are the maximum benefit limits?
A9. Carrier Solutions offer Annual Limits and Lifetime Limits from $1,000,000 to $5,000,000 dollars.
Q10. What about my run-out claims or tail liability?
A10. CS RRG offers the same standard coverage to all plan sponsors at no additional cost. CS RRG offers an incurred in 12 month and paid in 15 month contract with Advanced Specific Reimbursement and Monthly Aggregate Accommodation which maximizes the plan sponsors cash flow and provides gap protection from year to year.
Q11. Do I have to file my own claims with Carrier Solutions Risk Retention Group?
A11. No, each plan sponsor will select a third party administrator to manage the day to day self funded health plan operations and CS RRG will work closely with that organization to manage claims costs and provide timely reimbursements for claims amounts in excess of the plan sponsors chosen deductibles.