After extensive research, our organization is confident that “Health Insurance Captives” or “Group Captives,” are the ultimate solution for mid-sized groups. They are highly effective for groups with 50 – 500 covered employees, yet employers with several thousand lives are also utilizing them.
Captives have been around for over 50 years. They have predominately been used for property and casualty insurance. Workers compensation and medical malpractice insurance are two types that greatly benefit from the captive approach. Health insurance captives have only come to the forefront in the last decade, and have proven to be extremely cost-effective.
Group Captive Insurance is the perfect means of entering the self-funded arena with substantially less risk and volatility. Through a pooled risk approach, employers can collaborate to mitigate risk and harness the benefits of a large, predictable entity rather than retaining all of the risk on their own. Please note the following advantages of joining a group captive under the guidance of our professionals:
- Estimated savings of over $1 million in the first 5 years alone per 100 employees.
- Retention of your current plan design and network. A seamless transition for your employees.
- Single digit increases and even decreases are the norm.
- Viable quality cost containment measures and wellness initiatives to maximize savings and improve employee morale.
- 70-80% of fixed costs are converted into variable costs.
- No adverse risk.
- Total compliance with all ERISA, ACA and HIPAA regulations.
- Complete transparency with all costs.
As a result of recent changes, partially self-funded plans allow employers to avoid many key provisions of Obamacare and are now cost-effective solutions for groups as few as 50. The popularity of group health insurance captives is growing exponentially as a means of collaborating with other employers to control group health costs long-term.