???? The Secret Fortune 500's Use to Slash Health Insurance Costs: How Small Businesses Can Apply It ????

?? A Familiar Pain Point: Soaring Health Insurance Costs

One of the most significant challenges business owners face is managing the increasing costs of health insurance. It's a common pain point, felt by enterprises large and small alike. ????

However, have you ever wondered how Fortune 500 companies, giants in their respective industries, navigate this challenge? Well, it might surprise you to know that many of these corporations do not use traditional health insurance providers. ??

?? The Key: Captive Insurance Companies

Fortune 500 companies employ an approach that allows them to control costs more effectively – they utilize captive insurance companies. What are captive insurance companies, you ask? ??

A captive insurance company is essentially a subsidiary established by a parent firm to finance its insurable risks. It's a sophisticated approach used by companies to manage their risks and potentially save on insurance costs. ?????

However, for small and middle-market businesses, this strategy can be quite complex and demanding. From administrative burdens to specific tax requirements, setting up a captive insurance company isn't a feasible option for everyone. ?????

?? An Alternative Solution: Shared Health Insurance Captives

Don't fret just yet! There's an equally compelling alternative that small and middle-market businesses can adopt – shared health insurance captive insurance companies. This approach allows businesses to leverage the benefits of captive insurance without the administrative and technical complexities. ????

Some well-known companies such as FedEx, Keller Williams, and Amazon utilize this strategy for their drivers and, in Keller Williams' case, for their independent realtors. The result? Savings of 20% or more on annual health insurance costs! ?????

? The Magic Behind The Savings

How do shared health insurance captives work this magic? Well, it boils down to three crucial aspects:

1. ?? Lower Administrative Costs: Shared captives boast much lower administrative and processing costs than traditional insurance companies. Lower costs mean more savings!
2. ??? No Middlemen: Traditional health insurance often involves brokers who earn commissions for selling policies. In the world of shared captives, this cost is eliminated.
3. ?? Refunds on Overpaid Premiums: With traditional insurance, overpaid premiums turn into profits for the insurance companies. Shared captives, however, offer a refund if your claims come in less than anticipated.

If you want to learn more check out my video on the topic

??? Quality Care Options

Despite the financial advantages, quality of care remains a major concern for business owners and their employees. Fortunately, shared health insurance captives provide excellent care options. They have national contracts with renowned medical institutions such as the Mayo Clinic and the Cleveland Clinic Foundation. So, you can rest assured that quality is not compromised. ?? ????

?? Customized Coverage

Shared captives provide tailored coverage, developed with each business's unique needs in mind. The age of your employees, the types of procedures you want to cover, and other important factors are all considered when developing a plan that suits you. ?????

?? Increased Profitability, Enhanced Business Value

And the cherry on top? By saving 20% or more on your annual health insurance costs, your profitability improves. This increase in earnings and cash flow directly enhances the value of your company. ????

So, there you have it. The secret sauce to slashing health insurance costs the Fortune 500 way, tailored for small and middle-market businesses. In an increasingly competitive business environment, every saving counts. Let's explore these innovative strategies and drive our businesses forward! ????

If you found this article helpful, consider following my profile for more tips and insights on enhancing business value. Let's conquer these challenges together.????

ABOUT THE AUTHOR

Larry Evans has been helping business owners achieve their financial goals for over 40 years. He specializes in advanced tax planning, enhancing profitability, cash flow, and business valuation. Larry has worked with companies of all sizes, from start-ups to the Fortune 50, including brands like Nike, Boeing, and The Gap. Now, he's ready to help you navigate the road to financial success and maximize your wealth. Grab your own complimentary copy of his latest book The Millionaire Tax Solution at www.millionairetaxsolution.com