Curious Corner: October 2023 Insurance Trends
For the second year in a row, U.S. corporate employers are predicting that median healthcare costs will increase by seven percent. As costs accelerate, employers are paying more for less in a carrier-controlled marketplace.
Rather than deciding between raising deductibles or passing increased healthcare costs to employees, employers have a third option: group captive programs.
Group captives offer an alternative program structure that allows employers to exercise greater control over their costs – for the benefit of their company and their employees.
Group captive programs are a specialized form of health insurance that allows multiple employers to come together and collectively fund and manage their employee health benefits. It’s a win-win: companies gain more control over their health insurance costs and potentially save money by sharing the risks and rewards of their healthcare program.
Here’s how it works:
Rather than remaining subject to carrier costs and changes, employers can come together to create data-driven, employer-controlled programs.
Companies participating in group captive programs undergo a rigorous vetting and underwriting process to ensure the participants are aligned on their commitment to employee benefits and the group captive model.
Companies that opt for this route can realize a multitude of benefits, including:
Employee benefit programs are at a crucial inflection point. A recent survey found that employee satisfaction with benefits fell to 61 percent in 2023, a three percent decline from 2022 and the lowest point in the past decade.
We all know that benefits are vital to engagement and retention, so employers and leaders must find the delicate balance between supporting employees and ensuring programs are financially sustainable.
While the structure of every group captive program varies, employees in a group captive plan benefit from:
Our team has the connections and expertise to help you take control of your healthcare costs. Reach out to us today for a conversation about your program – and how we can help you realize the benefits of this approach.Back to Resources