Starting the conversation around Captive Insurance
Are you trying to change your clients’ mindset from one of a passive buyer of health coverage to an active consumer? This article can help! Start by looking not only at this year’s rate increase but what health insurance will cost in 10 years. Once you offer projections on cost increase, you can discuss how to control those costs with alternatives to traditional major medical.
As you’re discussing captive insurance, keep in mind the following points taken from this article:
- “With any major purchase by a well-run business, a process is followed that includes, at a minimum, finding out the cost, the suitability or adaptability of the product to the business and an estimate of ongoing expenses related to the product.”
- Most middle-market businesses forget basic purchasing rules when it comes to funding their health benefits.
- Traditional health insurance obscures premium costs while offering little control over the application to the business. Additionally, they provide no estimate of where the costs are going.
- Self-funding with a medical captive insurance product offers an opportunity to clarify spending on insurance.
- A medical captive is a pool of small to midsized employers who are sharing the risk of their medical insurance by hosting their own self-insured group. Medical captive groups can improve transparency, control and cost savings.
- Unsuccessful businesses make decisions based on their current predicament; Successful businesses, however, make decisions based on where they want to be long-term.
- Funding employee health benefits with an eye to the long-term is the best way to manage out of control costs. Too often, businesses look at their health insurance choice once a year.
- Without a long-term approach, businesses are held hostage to premium increases. However, with a self-funded medical captive, an alternative that delivers a long-term health insurance solutions is available.
Are you reluctant to start the conversation around captive insurance?
Use this article to start the conversation. The cost savings is measurable and the benefits far outweigh the risks.
