Rethinking Employee Benefits: How Captives Offer Cost Control and Customization

Healthcare costs are climbing higher every year, leaving employers stuck between rising premiums and the need to offer competitive benefits. If you’re an HR professional or CFO, you’ve likely asked yourself: Is there a better way to manage benefits without breaking the bank?

The answer could lie in employee benefits captives, an innovative solution that’s changing how companies handle group health insurance.

What Are Employee Benefits Captives?

Captives are a self-insurance model that allows employers to pool their risks with other like-minded companies. Instead of relying on a traditional insurer, you gain control over claims management, transparency in spending, and the flexibility to design benefits tailored to your workforce.

Why Are More Employers Turning to Captives?

Captives provide several impactful benefits:

1. Cost Predictability: Captives help stabilize budgets by spreading risk across a group. Even in high-claims years, costs are more manageable compared to traditional insurance plans.
2. Customized Benefits: You can tailor your benefits to meet your team’s unique needs, whether that involves providing more comprehensive mental health coverage or implementing wellness programs that yield tangible results.
3. Transparency and Ownership: With captives, you are in control. You’ll have a clear view of how your dollars are spent and greater authority over the services you choose.

Is a Captive Right for Your Organization?

While captives offer significant advantages, they are not suitable for every employer. Although there are captive programs available for organizations of all sizes, participating requires a commitment to long-term planning. It’s also important to work with experts who can assist you with feasibility studies, setup, and ongoing management.

Learn More

Our whitepaper, Employee Benefits Captives: A Guide for HR and Finance Leaders, was created to help you explore this option further. Inside, you’ll find step-by-step guidance, real-world success stories, and insights on integrating a captive into your benefits strategy.

Download the whitepaper and take the first step toward rethinking how your organization approaches employee benefits.