About Apex Advanced Funding
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?
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 highest rating of AAA 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