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3 Problems That Captive Health Insurance Can Solve

In today’s competitive business environment, employers are constantly looking for a long-term strategy to save on health insurance; captive health insurance is the best solution for the various problems that comes with insuring a small/mid sized group. Captive health insurance can solve 3 problems listed below:

1. Control

Often times, employers feel as if they have no control over the health care events of their employees. If employers cannot predict the health of employees, discussing what health insurance plan to go with tends to be tricky. Being an informed customer is important. Captives provide risk management techniques that can be applied to health care costs. Preventative care and claims management are also offered to reduce the cost of claims. This control and visibility proves to be beneficial for small-midsize business.

2. Size

Although most believe that small/mid-sized employers cannot benefit from captive health insurance, they most certainly can. Small/mid-sized employers may design a group captive insurance program where they can provide their employees with a cheaper and smarter alternative. A group captive supporting partially self-funded health insurance plan is best for these smaller employers because of the unpredictable medical claims that comes with having a smaller company. With captive health insurance, employers can get full access of their employee demographic to decide what option is best for them.

3. Unpredictability & Increased Risk

Small/mid-sized companies benefit from the use of group captives where the group can share claims together. The smaller the group, the less predictable the medical claims. This group captive provides employers with greater transparency which allows the claims to be more predictable. Brokers and administrators are an important factor in this process as they provide the insight and data on the employee demographics.

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Arthur Grutt