ACH Premium Alternative

Capitol provides the latest in ACH premium funding. The Automated Clearing House (ACH) Premium Alternative can be used to remit group insurance premiums for your members. The Automated Clearing House (ACH) revolutionized the way many different types of financial transactions are conducted, and it provided a new way for insurance companies to extend group plan rates and benefits without an employer-employee relationship present. Associations and Labor Unions use this method for insurance premium remittance, for any member, where there is not a direct billing arrangement between an insurance company and a sponsoring employer.

With ACH, we coordinate premium payments to insurance companies from member accounts through the ACH network, via the Federal Reserve Bank or Corporate Central Credit Union. Transactions come from participating members at an organization where the member has authorized to send funds to the insurance provider.


• Does not require a relationship with the originating company; transactions can come directly from member's financial institution.

• Can include transactions of any type (debits or credits), for any premium purpose.

• Does not require manual account balancing; only what is transmitted is posted.

• Returns and modifications done through ACH transmissions.

• Transmissions of transactions are electronic.

Payroll Deduction

• Requires a relationship and agreement with an organization that sends payroll deduction premiums directly to Capitol.

• Can be used to make payments from payroll deduction premiums.

• Requires balancing against a payroll file to ensure that all funds remitted are posted properly.

• Returns and modifications are coordinated between Capitol and the employer.

• Transmission of payroll deductions are via hard or soft copy invoicing.

Because more and more Labor Unions and Associations are electing to use the convenience of ACH for financial transactions, premium remittances are now the most popular way to conveniently pay for group rated insurance plans for members.