<\/p>\r\n\r\n\r\n\r\n
How Group Captive Health Insurance Works<\/strong><\/h2>\r\n <\/p>\r\n\r\n\r\n\r\n
Group captive health insurance allows companies to set up what are effectively in-house insurance companies. If that sounds like it requires a lot of expertise, relax. Working with an experienced partner ensures that the licensed insurance company not only adheres to all applicable laws and regulations but also truly works for you and your employees. This can benefit companies in almost any industry<\/a><\/span> and is especially compelling for small- to mid-sized companies, which can benefit from risk sharing and the other tailored offerings of captive plans.<\/p>\r\n <\/p>\r\n\r\n\r\n\r\n
A provider like Roundstone<\/a> can work with you and your advisor to set goals and identify risks. Then we\u2019ll develop, implement and operate a captive insurance plan. We offer turnkey management<\/a> and have the talent and experience to build a custom healthcare solution that perfectly matches your needs.<\/p>\r\n <\/p>\r\n\r\n\r\n\r\n
Here are some of the reasons why a group captive health insurance plan works like your current plan, only better:<\/p>\r\n
<\/p>\r\n\r\n\r\n\r\n
\r\n- – Risk taking:<\/strong> Each employer participating in a captive plan will self-insure at least $30,000 of claims per member, per policy period.
<\/li>\r\n- – Risk sharing:<\/strong> For claims between $30,000 and $500,000, employers pool stop-loss premiums and claims.
<\/li>\r\n- – Risk shifting:<\/strong> For claims above $500,000 and 125% of expected, reinsurance is purchased by the employer, and is paid for as part of their premium.<\/li>\r\n
- \u00a0<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
How Group Captive Health Insurance Plans Allocate Risk and Keep More Money in the Hands of Employers and Employees<\/strong><\/h2>\r\n <\/p>\r\n\r\n\r\n\r\n
Each captive plan’s “secret sauce” is its ability to convert the majority\u2014typically at least two-thirds\u2014of traditional fixed costs (i.e., stop-loss premiums) to a variable cost.<\/p>\r\n
<\/p>\r\n\r\n\r\n\r\n
And with a high variable spend, more money stays with the employer and reduces year-over-year claim volatility.<\/strong><\/em><\/p>\r\n <\/p>\r\n\r\n\r\n\r\n
With traditional insurance, employers pay a fixed premium and the insurance company assumes the risk of paying employee medical claims. With group captive health insurance, employers assume a portion of a claim’s cost by paying for a share of each claim as it\u2019s incurred. This allows employers to improve cash flow, which ultimately results in reduced insurance costs for employees.<\/p>\r\n
Small- to mid-sized firms are increasingly turning to captive plans due to the skyrocketing costs of conventional plans. Group captive health insurance plans outperform traditional fully insured plans over the long term by allowing the employer to retain funds year-over-year instead of forfeiting them over to an insurance company. If your claims are lower than expected, up to 85% of the benefit cost savings is subject to return, allowing your company to pocket the savings.<\/p>\r\n
<\/p>\r\n\r\n\r\n\r\n![\"Bucket](\"https:\/\/roundstoneinsurance.com\/excelsior\/wp-content\/uploads\/2019\/03\/How-Captive-Health-Insurance-Plans-Are-Funded-Infographic-1024x575.jpg\")
<\/figure>\r\n <\/p>\r\n\r\n\r\n\r\n
While reducing health benefit costs is the main reason companies turn to group captive plans, they are delighted to find many additional perks, such as:<\/p>\r\n
<\/p>\r\n\r\n\r\n\r\n
<\/p>\r\n\r\n\r\n\r\n
A provider like Roundstone<\/a> can work with you and your advisor to set goals and identify risks. Then we\u2019ll develop, implement and operate a captive insurance plan. We offer turnkey management<\/a> and have the talent and experience to build a custom healthcare solution that perfectly matches your needs.<\/p>\r\n <\/p>\r\n\r\n\r\n\r\n Here are some of the reasons why a group captive health insurance plan works like your current plan, only better:<\/p>\r\n <\/p>\r\n\r\n\r\n\r\n <\/p>\r\n\r\n\r\n\r\n Each captive plan’s “secret sauce” is its ability to convert the majority\u2014typically at least two-thirds\u2014of traditional fixed costs (i.e., stop-loss premiums) to a variable cost.<\/p>\r\n <\/p>\r\n\r\n\r\n\r\n And with a high variable spend, more money stays with the employer and reduces year-over-year claim volatility.<\/strong><\/em><\/p>\r\n <\/p>\r\n\r\n\r\n\r\n With traditional insurance, employers pay a fixed premium and the insurance company assumes the risk of paying employee medical claims. With group captive health insurance, employers assume a portion of a claim’s cost by paying for a share of each claim as it\u2019s incurred. This allows employers to improve cash flow, which ultimately results in reduced insurance costs for employees.<\/p>\r\n <\/p>\r\n\r\n\r\n\r\n <\/p>\r\n\r\n\r\n\r\n While reducing health benefit costs is the main reason companies turn to group captive plans, they are delighted to find many additional perks, such as:<\/p>\r\n <\/p>\r\n\r\n\r\n\r\n\r\n
<\/li>\r\n
<\/li>\r\nHow Group Captive Health Insurance Plans Allocate Risk and Keep More Money in the Hands of Employers and Employees<\/strong><\/h2>\r\n
Small- to mid-sized firms are increasingly turning to captive plans due to the skyrocketing costs of conventional plans. Group captive health insurance plans outperform traditional fully insured plans over the long term by allowing the employer to retain funds year-over-year instead of forfeiting them over to an insurance company. If your claims are lower than expected, up to 85% of the benefit cost savings is subject to return, allowing your company to pocket the savings.<\/p>\r\n<\/figure>\r\n