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Is Captive Insurance Right for Your Business?

What is a Captive and Why Should I Consider One?

For years, employers and employees alike have been significantly impacted by the rising cost of healthcare. But what’s even more alarming, is that according to the U.S. Centers for Medicare and Medicaid Services, healthcare spending is expected to rise an average of 5.5% annually, surpassing the rate of overall inflation or wage growth. This exponential surge coupled with a lack of transparency around the “unavoidable” increases in benefit spend, creates an entirely unsustainable situation for most businesses.

Yet, the downfall of an organization comes only when it accepts this circumstance as its fate, succumbing to the “status-quo,” obscure rate increases and failing to implement creative solutions to remove itself from this lose-lose scenario. By relying on traditional insurance models, employers relinquish the ability to maintain control over their long-term spending, losing autonomy to a funding model that was not designed with their best interest in mind.

Put simply—employers who remain fully-insured can’t win. The inefficiency, taxes and carrier profits cost employers on average more than 10-15% of their healthcare spend every year.

How often do you make a large purchase decision with no visibility into what makes up the cost, or input into how the product or service will be used? Would you spend 10-15% more for a car and have no control over the features that are included, only to realize you are driving off the lot with a vehicle that’s not what you wanted? Never. But when examined carefully, a fully insured plan means you are doing just that.

Discover if an alternative funding model like a Group Captive would make sense for your business by taking the short quiz here:

Working Outside the Traditional Solutions

Previously reserved for larger organizations, alternative funding mechanisms are now accessible thanks to innovative benefits strategists who believed in a better solution. Group Captives gives employers the control and transparency they need, without requiring that they take on the full amount of risk that often comes with a self-funded benefits plan. This approach allows employers to gain the flexibility and control inherent in a self-funded plan, combined with the stability and scale of a group pool, creating an opportunity to manage health plan risk.

Learn more about how your organization can challenge the status quo by reaching out to your OneDigital consultant and find out how a OneDigital | Captive can help your organization take control of healthcare spending.