How One California Company Took Control Of Its Health Insurance Costs

In the ever-evolving landscape of employer sponsored health insurance, companies are in a constant battle against rising costs and the challenge of providing benefits that their employees can afford to use. The story of a California-based technology company with a nationwide workforce of 500, is a testament to a transformative solution that you may not have considered: a health insurance captive.

The Challenge: Controlling Spiraling Health Insurance Costs

This company faced a common predicament; their health insurance costs were climbing, and they felt cornered by the lack of solutions to control their expenses. With 500 employees enrolled in their health plan, the stakes were high to find a sustainable and cost-effective strategy. This company felt that they wanted to provide good benefits to their employees, but they were concerned that constant increases would eventually force them to erode the benefits by increasing the deductibles and/or asking the employees to pay more.

The Turning Point: Discovering the Health Insurance Captive

When we first met with them, their frustration was clear. They were in search of a solution that could not only reduce their health insurance costs but also empower them with greater control over their insurance plan. The solution we proposed was a health insurance captive.

A health insurance captive is an innovative form of self-insurance where a company pools its risks with other like minded employers, to fund its claims. This model offers a plethora of benefits, including cost savings, lower volatility , and increased control over the benefits offered.

The Outcome: A New Horizon

Since embracing the health insurance captive, the client has become very excited at the future possibilities, including:

Unprecedented Cost Reduction: By joining a captive, they are now in a position to significantly lower both their costs and what their employees pay for health insurance.

Enhanced Control: The captive model has given them the reins to their health insurance, allowing them to tailor their plan to their specific needs with less risk.

Data Transparency: With direct access to their insurance claims, they have a clear view of their expenditures and can make data-driven decisions.

Technological Integration: A user-friendly smartphone app has been introduced, making it easier for employees to utilize their benefits.

Healthcare Navigation: Employees now have access to tools that help them find the right care within the healthcare system, ensuring optimal treatment.

A Model Worth Considering

This case study is more than a success story; it's a call to action for companies grappling with similar challenges. The health insurance captive model is not just a strategy for the present; it's an investment in the future financial health of a company.

As our client continues to navigate their new health insurance landscape, they serve as a beacon for what is possible when companies dare to think outside the traditional insurance box.

If your company is facing similar frustrations with health insurance costs, it's time to consider whether a health insurance captive could be the solution you've been searching for. Our client’s is a clear indication of the potential benefits that await. Book a call HERE