A benefits captive seeks to unite like-minded employers who want to better control healthcare costs by:
- Eliminating insurance carrier profits
- Utilizing healthcare claims data to control medical costs and risks
- Eliminating health insurance premium taxes
Employers are trying to find creative ways to contain costs, sidestep certain ACA requirements, and take control of their employee benefits. For many, the solution is self-funding.
Self-funding brings it set of challenges, mainly the need to purchase stop-loss insurance which often includes high deductible limits and premium rates that are far too onerous for businesses.
Enter benefits captives. A captive is a group of employers that unite to insure the medical risks of its participant organizations. They pool self-funded employers together to save on stop loss insurance. Benefits captives aren’t right for everyone, but they are a good option for an established employer willing to weed through the complexity and take the long view of benefits in order to contain costs.