{"id":53642,"date":"2024-03-21T00:00:02","date_gmt":"2024-03-21T04:00:02","guid":{"rendered":"https:\/\/roundstoneinsurance.com\/?p=53642"},"modified":"2024-03-21T14:48:16","modified_gmt":"2024-03-21T18:48:16","slug":"energize-your-business-with-better-employee-health-benefits","status":"publish","type":"post","link":"https:\/\/roundstoneinsurance.com\/excelsior\/blog\/energize-your-business-with-better-employee-health-benefits\/","title":{"rendered":"Energize Your Business with Better Employee Health Benefits"},"content":{"rendered":"

Healthcare, by its very nature, provides a deeply personal service to us all. Yet, I’ve watched with growing concern as this essential service has become increasingly impersonal, driven by a labyrinth of intermediaries and misaligned incentives that distance it from the very people it’s meant to serve.\u00a0<\/span>
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This rift not only impacts the quality of care delivered but it also results in untenable cost increases for employers who sponsor health plans for their employees. <\/span>Employee contributions for family coverage increased 47% over the past decade,<\/span><\/a> while employees\u2019 satisfaction with their benefits dropped to its lowest point in the same ten years, <\/span>reaching 61% in 2023<\/span><\/a>. This confirms the dramatic disconnect between healthcare cost and quality – everyone is paying more and getting less.\u00a0<\/span><\/p>\n

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The good news is, we have the solution. The key to reestablishing this vital connection between healthcare and individuals lies in rethinking how employers fund their employee health plans. Self-funding with a group medical captive<\/a> allows businesses to assume direct control over their healthcare expenses, offering a level of flexibility and transparency not found in traditional insurance models.<\/span>
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Self-funding not only empowers employers to manage healthcare costs more effectively<\/a> but also allows for the creation of personalized health plans that prioritize easy access to care and quality of care. This approach improves satisfaction and retention<\/a> — employees are more likely to stay at a job if they like their health plan.\u00a0<\/span>\u00a0<\/span><\/p>\n

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The Captive Can Set You Free<\/h2>\n

The conventional approach to funding healthcare benefits, known as Fully Insured or Fully Funded<\/a>, is a 100% fixed and escalating cost approach, payable as a monthly premium to an insurance carrier who manages the plan. Because there is no control or transparency, it often leaves small and mid-market employers feeling powerless and disconnected from the process. Costs continue to increase every year and without insights into their claims data to understand why, there is nothing they can do to impact them. Unlike every other business expense, healthcare costs are a black hole.\u00a0<\/span>\u00a0<\/span><\/p>\n

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The remedy to this issue is rather simple: Instead of giving control to a health insurance company, the employer takes the reins and manages their own healthcare costs. This approach is called self-funding. Most large companies self-fund because they can – they have safety in numbers. But now, smaller businesses can self-fund too as part of a group captive. <\/span>\u00a0<\/span><\/p>\n

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Self-funding with a group medical captive<\/a> enables smaller companies to self-insure safely. With this three-tiered model, you pay for healthcare costs up to a specific deductible, you share some costs above that deductible across a pool of hundreds of other employers in the captive, and finally, you shift costs to a stop-loss carrier to cover catastrophic claims<\/a>.
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