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?
- 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
- 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