What is a Captive? It’s Simple – A better Approach To Health Benefits For Schools
What Is The Fundamental Goal Of Captivated Health?
The goal of the captive has always been to create a financial arrangement that allows schools to join together, take advantage of the self-funded health plan model, and reduce the volatility and inefficiency that comes with buying stop loss from the open market.
Questions To Consider When Considering A Captive
- Are you paying more and getting less?
- Can I provide my employees world-class health insurance and still save money?
- Why should I change from buying my healthcare plan to owning it?
The prevailing wisdom was that an employer with fewer than 500 employees was better off in the fully insured marketplace. A self-insured financing arrangement is used by 82% of employers with more than 500 employees. A tried and true type of partially self-insured plan known as a “Captive” levels the playing field and helps small and mid-sized employers to take advantage of the same control, flexibility and costs savings just as larger companies have done.
The Benefits of Being An Owner
As a buyer, you are stuck with a plan that was designed and controlled by rule makers who don’t know anything about your company or your employees. They control your claims data so you never really know what is driving your costs. When you make the decision to become an owner, you take control of your plan design, and all of the plan data is available to you. You are able to make decisions based on that transparency. You know exactly what is going on and how to react in the best interest of your budget and your employees.
Why A Captive?
The Bottom Line
Health Insurance costs are to spike around 9% on average year over year due to higher health care costs. Schools will want to make the most of every dollar spent.
Self-Funded Benefits
Over the past 15 years, health insurance premiums have increased by an astonishing 213%. At the same time, workers’ earnings have only increased 45% against an overall inflation rate of 39%. That is both irrational and unsustainable. Finding a way to gain control by moving from being a traditional buyer of healthcare to becoming an owner of your healthcare is a no brainer. Big companies have been doing it for years, and now you can too.
Data Informed Benefits
Once you gain access to your data, you have the opportunity to design programs that provide protection, create a climate of health and wellbeing and aid your employees in becoming better consumers. Healthier employees, armed with tools and a concierge to help t hem make better decisions creates a more stable and predictable environment and lowers your overall cost.
Improved School Culture
Next generation labor force is more attracted to employers who create a thriving, flexible and engaged work environment with a focus on culture, which has always been a hallmark of independent schools. A tried and true type of partially self-insured plan known as a “Captive” levels the playing field and helps small and mid sized employers to take advantage of the same control, flexibility and costs savings just as larger companies have done.