November 25, 2025 Reinsurance

Capital Equilibrium Launches a New Level-Funded Pharmacy Benefit Program Powered by Capital Rx

Business Wire

Leveraging Capital Rx’s spread-free, full pass-through pharmacy benefit model, Capital Equilibrium is bringing Rx cost savings and renewal stability to the self-funded municipality and commercial markets

NEW YORK--(BUSINESS WIRE)--
Capital Rx, Judi Health’s transparent pharmacy benefit management (PBM) line of business, is powering a new level-funded product, Capital Equilibrium. Unlike legacy level-funded products, Capital Equilibrium leverages Capital Rx’s full pass-through model, clinical programs, and contact center for member care – all powered by modern enterprise health technology (Judi^®) – to offer clients a combination of cost savings, flexibility, and budgeting security.

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“The skyrocketing health insurance premiums we’re seeing across the country are in no small part due to rising spend on the medicine people need,” said Justin Leader, President and Chief Executive Officer of BenefitsDNA, a Pennsylvania-based employee benefits advisory, brokerage and consulting firm. “This problem predates concerns about tax credits expiring. Municipalities and other entities with fixed budgets or an inability to assume the risk of extremely volatile benefits expenses have dealt with compounding costs for years. Now, New Jersey’s state benefit plans, for example, must worry about 30% - 60% rate increases for medical and pharmacy premiums, respectively?² We’ve reached a breaking point.”

By partnering with an A-rated stop-loss carrier for reinsurance and Capital Rx for conflict-free pharmacy benefit administration, Capital Equilibrium can bend the curve for plan sponsors through its unique features across all 50 states and provide:

A fixed monthly payment plan covering expected claims, administrative fees, and stop-loss, with these monthly amounts often below market rates
Stop-loss insurance to back claims exceeding monthly amounts, offering cost control for claims covered by the policy
A fair pricing structure that eliminates the traditional PBM gameplay around discounts and rebates, which often results in overstated, unachievable savings expectations
Individualized client reporting
The option to participate in a risk-sharing program to share in any gains or losses related to stop loss coverage
An experience refund or rate credit after the end of the plan year if claims are better than expected
24/7/365, U.S.-based, multilingual, award-winning call center support to plan members

“This is a very price-sensitive market, and we believe that Capital Equilibrium is the most competitive and flexible level-funded solution,” said Mike Miele, FSA, MAAA, Senior Vice President of Insured Services, who oversees the new product. “When we underwrite the program and quote the actual fees, we show people what they’re spending now, what we think the costs will be – including expected rebates, which are 100% passed-through – and the amount that they will pay every month. We essentially lock in savings with a stop-loss policy. And if the experience comes in better than expected, the employer receives a dividend, a refund, or a ‘credit’ toward the premium for the following year. There are so many ways we can craft this and work with employers – that’s a true benefit.”

For more information about Capital Equilibrium, please visit: www.judi.health/solutions/level-funded-pharmacy-benefits

About Judi Health

Judi Health is an enterprise health technology company providing a comprehensive suite of solutions for employers and health plans, including:

Capital Rx, a public benefit corporation delivering full-service pharmacy benefit management (PBM) solutions to self-insured employers,
Judi Health™, which offers full-service health benefit management solutions to employers, TPAs, and health plans, and
Judi^®, the industry’s leading proprietary Enterprise Health Platform (EHP), which consolidates all claim administration-related workflows in one scalable, secure platform.

Together with our clients, we’re rebuilding trust in healthcare in the U.S. and deploying the infrastructure we need for the care we deserve. To learn more, visit www.judi.health.

¹Capital Rx’s Customer Care Team Wins 5 Stevie® Awards for Customer Service. Judi Health. April 17, 2024.

² ICYMI: AON Releases Recommended Rate Increases for State Health Benefits Plans for Plan Year 2026. State of NJ, Gov. Phil Murphy. July 9, 2025.