Stop Overpaying for Employee Health Benefits! Turn this Expense into Profits!
With the advent of Obamacare, unfunded mandates and additional taxes, HealthCare benefits can be challenging to face as a business owner. With a captive, we can simplify all of that and save you up to 20% off your current costs; employees can keep the same level of coverage you have now, while participate in the underwriting profits. This creates a potential revenue source out of an existing expense.
What is a health insurance captive? A captive is an independent insurance company created and owned by at least one non-insurance company to assume the employee benefits risks of the captive owner (or owners). Incorporating a captive into a plan strategy allows members to benefit from being owners in an insurance company. Not only do captives provide market leverage, but members are able to increase the predictability of medical costs.
For most organizations, cost containment is top of mind when tackling benefit planning. Alternative funding options like the captive model provide several advantages that traditional designs may not offer.
Here are 3 ways health insurance captives offer more value:
Some of the Ways a Captive Can Help You:
• Lower costs for health care benefits for employees
• Participation in the profit of the insurance
• Investment income on the insurance
• Captives offer reduced risk by spreading claims over more policy holders
• Better claims management
• Tax advantages in certain scenarios
• Similar to Self-Insured, but with lower Stop-Loss Cost and better returns
Greater Control of Medical Costs
Employers want the ability to budget medical spend the way they manage most other expenses. With change being the only constant in the health insurance environment, captives provide a strategy for employers to take better control of their healthcare costs.
Receive Returns of the Underwriting Profits
Companies participating in a captive program have the opportunity to benefit from the underwriting profits. With a captive plan, your positive claims experience is rewarded. Conversely, a standard employer reinsurance contract requires premiums paid in and all risk and reward is shifted to the insurance company with no potential upside to the employer.
More Protection than with Fully Self-Funded Plans
Medical costs are too high to make completely self-funded plans a good option for many employers. To minimize risk, many employers choose a partially self-funded health plan which involves adding a reinsurer or stop-loss carrier. The captive provides an extra layer between the self-insured employer and the stop-loss carrier. In a health insurance captive, the high-cost claim risk is spread over all member companies.