A Group captive approach to insuring your medical expense risk is one of the many strategies escalating medical costs head on. Take control by not only improving your approach to how health care is delivered to your organization, but how the insurance dollar is spent and returned. When the best possible cost containment services are combined with an efficiently built risk retention facility, the conclusion that a Medical Expense Group Captive offers the lowest cost solution for insuring your health care is evident.
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Because of several factors including double digit premium rate increases, loss of control under healthcare reform and innovative health insurance programs that return dollars when health care costs are reduced, wellness programs coupled with financial incentives are becoming all the rage. Why not, they provide a great opportunity for both employer and employee to work together and reduce health care expense for each.
Whether a captive insurance company is right for you depends upon your particular risk or exposure, the size of your business and the activity or inactivity of the traditional insurance market. Fortunately, the ability to enter or exit the captive market has become a lot easier through cell or segregated account captive companies.
Reducing cost or at least slowing the annual increase in the cost of medical care is the objective. How this objective is achieved is where the conflict arises.
The market dynamics that group all insureds together when doling out premium rate increases provide a fertile ground for employers to exit the standard market.
The Group Captive offers most of the same benefits of a SIG along with a built in compliance program in the form of a regulated policy issuing company or front. Risk sharing, customized claims and loss control, experience underwriting and premium savings are all available from a Group Captive program.
Recent news highlighting court decisions, legislative action and market dynamics is providing a boost to the group captive insurance approach. Considering the financial implications of choosing another form of group or pooled insurance for your workers’ compensation or health benefits, group captives present a compelling and convincing alternative.
Over the last fifty years, captive’s have evolved from covering the uninsurable risks of a Fortune 500 Company to insuring everyday exposures like Workers Compensation and Auto Liability of groups and associations. It is the application of this group ownership approach to medical expense coverage that creates the Medical Expense Group Captive Opportunity.