Frequently Asked Questions

What Does the Apex Advanced Funding Provide an Organization?

  • Analytics using historic costs and trends
  • Actuarial modeling to establish and predict costs over a three to five-year period
  • Pre-funds the predicted costs in the capital markets for three to five years borrowing
  • Structures a fixed monthly payment, providing long term planning and budget predictability
  • Establishes and maximizes a significant Reserve Fund within the Trust

What Does an Organization Need to Provide Apex Advanced Funding to Receive A Proposal?

Health Proposal

  • Authorization and directive to the plan payer for 100% data collection/interface
  • Minimum Data: previous three years of Health Care costs
  • The average number of employees in each year
  • A Mutual Confidentiality Agreement

Workers Compensation

  • An actuarial report that identifies your "paid" and "reported losses" and allocated loss adjustment expense development by fiscal year for the last three years.

Are There Any Out-Of-Pocket Costs Associated with Receiving A Proposal?

  • There are no out-of-pocket costs associated with receiving a proposal

How Can the Apex Advanced Funding Program Obtain A Low Interest Rate Loan When Our Organization’s Credit Rating is Much Lower?

  • The Grantor Trust is always fully collateralized at 101%
  • The payments to the lender consist of monthly principal and interest from the trust supported by Health Care equivalent premiums from the organization and cash reserves
  • Moody’s, Fitch, and Standard and Poor’s have given their financial rating to the Grantor Trust
  • The low interest rate provides for an investment opportunity that will accrue as a surplus deposited to the tax-free reserve established within the Trust

Explain the Specific Services That the Apex Advanced Funding Program Provides?

  • Provides all proprietary documentation for the special purpose trust
  • Determines the amount of funding required to cover benefits for the next three (3) years for Health Care and five (5) years for Workers’ Compensation
  • Identifies a financial institution to provide funding for the Trust, and will receive monthly payments from the Trust

What Other Ongoing Services Are Provided for The Term of The Engagement?

  • Monthly and Quarterly reports are generated, and meetings convened monitoring all financial factors that affect both fixed and variable costs