Group captive programs are a specialized form of health insurance that allows multiple employers to come together and collectively fund and manage their employee health benefits. It’s a win-win: companies gain more control over their health insurance costs and potentially save money by sharing the risks and rewards of their healthcare program.
Here’s how it works:
- Formation of a Captive: A group of employers, often from the same industry or geographic region, forms a captive insurance program that is owned and controlled by its member companies.
- Pooling Resources: Member companies pool their financial resources and premiums into the captive. This pool of funds covers the medical expenses of their employees and dependents.
- Risk Sharing: By sharing the risk among a larger group, member companies can potentially reduce their exposure to high claims and premium volatility. Companies in a group captive often benefit from more stable and predictable health insurance costs.
- Customized Plans: Group captives allow member companies to customize their health insurance plans to meet the specific needs of their employees.
- Cost Transparency: Members typically have greater transparency into the costs and performance of their health insurance program. This transparency can help companies make more informed decisions about healthcare benefits and cost management.
- Profit Sharing: If the captive experiences lower-than-expected claims and generates profits, these profits are shared among the member companies.
If you are a plan sponsor and want to be a part of a Group Captive Insurance Company and willing to adopt proven risk management strategies including Reference Based Pricing, Direct Primary Care, Provider Contracting, Cash Pay Point-of-Service Claim Adjudication, Specialty Drug Risk Transfer strategies and other out-of-the-box risk management strategies, we invite your inquiry.
Contact RiskManager@RiskManagers.us
