Using a captive insurer as a group medical strategy can help you avoid the treadmill of higher prices, and insurance company profits are your expense. But there are also some other benefits you’ll experience—including one that might surprise you!
If you’re ready to discover the benefits of implementing group medical strategies, read on.
Usually, to save money on health insurance, you have to reduce benefits or cut out health coverage. With a captive insurer, you spend less because you’re only covering real medical costs. If costs are lower than average, you get money back.
Best of all, average costs don’t increase dramatically yearly, so you won’t see huge increases at each renewal.
What will you do with the savings?
You can turn around and re-invest in your employees. You can offer additional preventive health measures, free gym memberships, or other incentives. Or, maybe this year, you can add extra coverage.
Reinvesting those savings in your company means the profits benefit you, not someone else.
The most common type of captive insurance company is a “single-parent captive insurance company.” These companies typically insure the risks of the parent company, its subsidiaries, and its employees. The parent company can also be its own subsidiary company.
Wanting to control costs and only pay for actual medical expenses is ideal for every company, but being fully self-insured is very risky. If you have a year of very high medical costs, it can damage your core business.
A captive health insurance company provides an extra layer of protection. Because a reinsurer or stop-loss carrier is covering extreme circumstances, you can rest assured that you won’t have to contribute beyond the plan's defined maximum.
Not having to set money aside for extreme cases allows you to enjoy the predictability of self-coverage without the excessive risk.
Does any benefits manager enjoy renewal season? Not usually! The stress of preparing for multiple hour-long meetings full of negotiation and tough choices means that most managers hate that timeframe.
One of the most surprising benefits of a group medical strategy is that renewal season is easy and stress-free. You get your time back, and you reduce your anxiety. What used to be several hours of meetings becomes a single 15-minute session.
Why? With a captive group insurer, you won’t face considerable increases in premiums annually. The underlying cost of care doesn’t increase that much year to year, so you’ll likely be paying a similar or lower premium.
Who doesn’t want a more peaceful renewal season?
As you can see, there are many benefits to using a group medical strategy. If you’re ready to learn how to benefit, we’re here to help.
Contact us for more information today!
Take the assessment to find out:
https://www.riskmgmtadvisors.com/group-medical-benefits-assessment