Over the past five years, the popularity of captive insurance companies has skyrocketed. Not only do more than 90% of Fortune 500 businesses own at least one captive, but even small and mid-sized companies have formed them.
With Group Health benefits being the second largest P&L expense for small to medium sized businesses , coupled with the ever increasing costs to employers, there is a huge concern of affordability leading to deeper concerns of employee sustainability in the marketplace.
Over the last decade, family premiums for employer-sponsored coverage have jumped 47%, according to a report from the Kaiser Family Foundation. That rate outpaces both wage growth (31%) and inflation (23%) over the same time period.
An ACA Compliant health captive is a great alternative for small to medium sized businesses versus the limited options available in the traditional health insurance marketplace for the following reasons, but not limited to the following:
1. Potential of Significant Savings
- Minimize Employer's Health Insurance costs & improve cashflow without sacrificing coverage or raising deductibles
- Our Captive Management Company has an average of 20% Savings for Employers
- Opportunity to minimize premium increases
2. Control of Group Health Plan
Ability to decide on things such as:
- Third-Party Administrators
- Pharmacy Benefit Managers
- Risk Tolerance Preferences
- Provider Networks
- Guidance in Controlling Future Claims