Many employers are faced with the rapidly growing cost of health insurance, second only to payroll. The average cost for family coverage is almost $13,000 a year. Larger employers are capable of taking control of their costs because most of them are self insured. Since this allows for transparency, large employers can implement wellness programs targeted at what their true problems are.
Most mid-sized employers are fully insured and do not have the product options that their larger counterparts have available. They do not know what claims they have or where their premium dollars go. The lack of transparency prevents them from taking control of the cost of health insurance.
So how can mid-sized employers change what they are doing? They can form what is called a captive program. A captive can be formed by a group of employers in an effort to reduce the costs associated with providing health benefits to their employees. These employers can come from a wide variety of backgrounds including existing risk retention groups, trade associations, franchises, portfolio companion of private equity firms, and clients of an agency or broker. Employers have been using captive programs for workers compensation for years with high success.
They are a tool to help employers gain more control over their health insurance and reduce its costs. A captive program must be coupled with a long term commitment to reducing cost drivers. Implementing wellness programs and medical tourism programs are ways to address cost control measures.
Read more @ http://www.selffundingmagazine.com/article-detail.php?issue=issue-5&article=captive-program
Most mid-sized employers are fully insured and do not have the product options that their larger counterparts have available. They do not know what claims they have or where their premium dollars go. The lack of transparency prevents them from taking control of the cost of health insurance.
So how can mid-sized employers change what they are doing? They can form what is called a captive program. A captive can be formed by a group of employers in an effort to reduce the costs associated with providing health benefits to their employees. These employers can come from a wide variety of backgrounds including existing risk retention groups, trade associations, franchises, portfolio companion of private equity firms, and clients of an agency or broker. Employers have been using captive programs for workers compensation for years with high success.
They are a tool to help employers gain more control over their health insurance and reduce its costs. A captive program must be coupled with a long term commitment to reducing cost drivers. Implementing wellness programs and medical tourism programs are ways to address cost control measures.
Read more @ http://www.selffundingmagazine.com/article-detail.php?issue=issue-5&article=captive-program
