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Benefits of Advantage 3
- Budgetability. Client contributes monthly on a fixed payment schedule for 36 months.
- Favorable financial accounting presentation. Unconsolidated, special purpose entity disclosed via footnote not as balance sheet item.
- Asset/Liability Management. Note proceeds are invested to hedge against healthcare inflation and accumulate reserves.
- Beneficial tax treatment. The investment income is insulated from taxation.
- Opportunity to build needed reserves to buy down future risk.
- No need to change insurance carrier, consultant/broker or plan design
Partnering with Dryden will empower your organization to stabilize healthcare funding without painful budget cuts or
benefit reductions.
Under this revolutionary program, your organization pre-funds actuarially-derived payments (plus a reserve) into a trust for a set number of years. Your organization then makes level, predictable payments to defease the debt while the Trust makes the benefit payments. In this way, the trust absorbs the volatility of the healthcare expenses. You need only budget for regular, predictable payments into the trust.
Dryden provides customized, structured solutions
- Long-term (36 month) collateralized funding programs to defease healthcare costs
- Off-balance-sheet Trust held by highly-rated financial institutions provide a fixed monthly payment guarantee, financing and reinvestment structure
- Compliance-based healthcare plans that deliver compelling ROI by improving the health status of group members
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