Over the past 15 years, health insurance premiums have increased 213%. With no data and no ability to control their plans, small and mid-size businesses have had no choice but to water down their benefits and pass more of the cost to employees who are unprepared to deal with that burden. But you can change that!
What is a Group Captive Health Plan?
A captive health plan is a variation of a single-employer partially self-funded plan. It is owned by multiple employers (all of one type of industry or, in a different arrangement, companies of various industries). Regardless, it is owned and controlled by those it insures. Its primary purpose is to insure the risks of those multiple employers who benefit from being able to own and control their plan. They have access to all of their plan data to help make intelligent and meaningful plan design changes. They gain when claims paid out are less than expected and purchase stop-loss insurance to cover large, unexpected claims and to be able to predict their maximum costs. The owners also come together to share best practices, govern their plan and mutually decide on the future direction their plans will take. Watch the explainer video to learn more.
What is a Partially Self-Funded Plan?
A partially self-funded plan (or self-insured plan, as it is also called) is one in which an employer assumes financial risk for providing health care benefits to its employees. Generally, these plans purchase “stop-loss” insurance to protect against large, unexpected claims and years in which total claims exceed projections. The plan has access to all of its data to help make intelligent and meaningful plan design changes. The plan gains when claims paid out are less than expected. Not every employer is financially suited to partially self-fund and expert advice is needed to assess those variables and to set up and manage the plan.