Under a fully insured health benefit plan, an insurance company assumes the financial and legal risk of loss in exchange for a fixed premium paid to the carrier by the employer. A self-funded group health plan is one in which the employer eliminates obligations to a health plan provider by assuming the financial risk of paying for their employees’ health care themselves, either from a trust or directly from corporate funds.
It’s essentially a pool of like-minded employers, who share in the advantages of being self-insured by leveraging a single self-funded plan to impact pricing and risks. These groups of employers, forming a captive are then able to provide affordable, long-term medical benefits to their most valuable resource- the employees.
While captive insurance programs are not new, until recently, the benefits of a group health captive were only an option for “big” businesses. Towne Insurance now offers group health captives as a creative alternative to traditional employee benefits programs. This solution offers mid-market businesses greater control over the costs associated with their employee benefit program, without the risks involved of being self-insured.
For more detailed information about the benefits of participation in a Towne Insurance group captive program, or to discuss which one is right for your organization, email us Solutions@TowneInsurance.com
