What is an Employee Benefits Captive and why is this the right time to explore one?
Advantages to an employee benefits captive
Companies that are financially strong, are prepared to assume risk and make an investment to reduce healthcare costs are good candidates for an employee benefits captive. The employer must be committed to a culture of health and wellness for employees and be ready to participate in incrementally progressive risk management initiatives.
A Captive is a risk management program where employers can control and administer their own benefits program. The employer is essentially acting as their own insurance company, backing claims with their cash reserves and stop loss insurance.
Greater Control
Gain greater control and flexibility over benefit design plan
Exemption
Enjoy exemption from complying with state mandates for healthcare benefits
Improve Cash Flow
because claims are paid when they arise instead of paying for insurance in advance
Pay Less
Pay less in insurance premium taxes and operational expenses because the employer buys less in insurance
Opportunity
Realize opportunity for profit — any captive insurance company surpluses are distributed to program participants