By Greg Watkins
September 28, 2022
It was January 1, 2014, that we started considering a benefits captive for some of our customers. We are always seeking better ways for our customers to control their healthcare spend. The common characteristic of the groups interested in the captive was a concern with consistent rate increases year over year with no supportive data to validate the need for the increase.
The growth of this market has been phenomenal. Our customers that have moved to a benefits captive have experienced enhanced transparency, greater cost control, more tools to control claims cost, and impressive financial results. The paradigm shift from “always seeking a better rate” to “always seeking a better way to control plan costs without reducing benefits” produces optimal long-term results. This strategy is generally most effective for companies that have 50 or more employees, a vested desire to control costs, and those that maintain a long-term vision to limiting the risk with creative solutions.
