January 21, 2022
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.
Significant Savings to Reinvest
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 every year, 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. Maybe you can offer additional preventive health measures, free gym memberships, or other incentives. Or, maybe this year you can add additional coverage.
Reinvesting those savings in your company means the profits benefit you, not someone else.
More Protection Than Pure Self-Insurance
The most common type of insurance captive insurance company is referred to as a “single-parent captive insurance company.” These single-parent captive insurance companies typically insure the risks of the parent company, its subsidiaries, and 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 there is a reinsurer or stop-loss carrier 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.
Less Stress Around Renewals
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. 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 be facing huge increases in premiums each year. The underlying cost of care doesn’t increase that much year to year, so you’ll likely be paying a similar premium or even a lower one.
Who doesn’t want a more peaceful renewal season?
Get Started With Captive Group Insurance Today
As you can see, there are many benefits to using a group medical strategy. If you’re ready to learn how you can benefit, we’re here to help.
Contact us for more information today!
If you would like to lower costs while simultaneously improving benefits to your employees, then click this link for a FREE GROUP BENEFITS ASSESSMENT: https://riskmanagementadvisors.typeform.com/to/WVe4vi7f
Discover If A Captive Insurance Company Is Right for Your Organization: Click here to start the assessment: http://bit.ly/captive-survey
