In a world full of options, it’s difficult to fathom that small and mid-size employers (50-500 employees) have had to choose either a fully insured employee benefit program or a self-funded benefit platform. With costs continuing to rise and the addition of ACA taxes and fees for the fully insured groups, clients are asking for additional options to help reduce costs, allow for transparency of claims and utilization and escape some of the mandates of a fully-insured program.
Many people are familiar with property and casualty captives – where like-minded, entrepreneurial companies come together and share risk in order to reduce market volatility and cost. Benefits captive are similar – it allows for groups of smaller employers to reap the benefits of self-funding (lower costs, transparency) while minimizing risk and volatility. This program allows for individual specific deductibles, a shared risk corridor and stop-loss protection over and above the captive.
Horton has partnered with Pareto and the 100+ members of it’s captives to offer a solution to the issues you are facing. Pareto was chosen because of their experience, their 100% member retention and their performance – keeping the median renewal increase below 5%.
Why should YOU consider a captive?
- Projected costs (expenses plus claims) estimated to be 4-8% lower in the first year (and potentially compounding after that)
- Funding (cash out the door) similar to fully-insured
- Limited downside of approximately 15% of their fully-insured premium.
- Options for heterogeneous and homogenous captives
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.