Does a Group Health Captive Save You Up to 15%?

From Joel Geddes, Jr.

At ERMIS, we operate a Captive consulting practice with extensive experience regarding this question.

Actually, there are several other benefits in addition to at least a typical 15% long term cost savings . You can also become partially self insured, regulated by ERISA — not Obamacare! — design your own benefits and coverages and engender a healthier workforce with corresponding lower long-term health costs, worker’s compensation costs and increased productivity.

However, without some specific background on your company such as number of employees, historical claims experience etc., it’s difficult to simply give you a yes/no answer if a Captive approach would be a fit for you.  One indicator for you would be if you have previously considered and determined if you qualify to partially self-insure your Group Medical.

That said, the use of Captives in general is growing exponentially now in the middle market, no longer just for the Fortune 1000 Companies. The use of a Captive for employee benefits including Group Medical is also fast evolving. 

The consideration of a Captive initially driven by your interest in cost savings can entirely change your appreciation for and new commitment to a long term risk management strategy.

Please feel free to contact us today if you would like to drill down a little further with your company info.