The Insurance Shell Game
Obtaining group health insurance has become a shell game. Every year rates go up, requiring businesses to evaluate options and consider new carriers, often settling for less coverage and benefits at higher price tags. Then, after selecting a lower rate this year, the carrier raises rates on the annual renewal, and thus, the proverbial shell game perpetuates yet again. After a few years, it is likely you will be reunited with one of the previous carriers.
Jumping from carrier to carrier is costly to administrate, plus employees may be compelled to higher co-pays and not have full access to their doctors in-network, etc. The solution is to utilize aggregation programs like PEOs and captive programs.
Companies that need insurance for employees should keep costs down with self-funded options rather than using gimmicky tactics like reference-based pricing. Employers that utilize captive health insurance programs are in a position to lower insurance costs and better manage their risk exposure while providing more flexibility of benefit plan design. PEOs ensure businesses can operate effectively and efficiently while reducing administrative costs and allowing employers to put their time and effort into growing their business.
Beyond saving money, let’s examine why captive insurance or PEOs might be a good fit for you.
Captive Insurance
A captive insurance plan, or a self-insured plan, consists of a group of companies that come together to create a fund, also known as a buying group. Captive insurance enables employers to combine employees’ claims experience with other like-minded business owners to control medical insurance costs.
Business owners are the insureds in a captive; therefore, they can possess much greater control to negotiate better terms during renewal cycles in addition to reducing volatility and escaping the 12-month renewal cycle.
Captive programs are licensed and protected by the Department of Insurance and allow employers to take advantage of pharmaceutical rebates while ensuring quality coverage at a lower cost. Business owners in a captive program are also exempt from ACA surcharges and taxes on insurance premiums as well.
Benefits of a PEO
Professional employer organizations (PEOs) allow employers to give employees access to more affordable benefits while streamlining HR-related functions such as payroll, benefits, compliance, and workers’ compensation.
As an employer, it is beneficial to select a PEO that provides plans that are ideal for your business and fit your employees’ needs the best.
A PEO delivers significant advantages, especially for small businesses without requiring experience in HR or payroll. PEOs allow small businesses the opportunity to provide competitive benefits without the steep cost that bigger businesses can payout.
PEOs enable employers to put their time and effort into growing their business while reducing administrative costs.
The goal of a captive is to minimize the risk of its member companies while providing high-quality insurance coverage with more flexibility of benefit plan design. Organizations from any industry can utilize captive health insurance programs to reduce healthcare costs, minimize risk, and offer financial flexibility.
Consider leveraging a PEO or captive health insurance plan for your organization. With a PEO or captive insurance plan you have the ability to make your own decisions while reducing risk and saving your business a significant amount of money.
Learn How Triton Can Help You
We can help guide your employees in the right direction towards healthcare options that work for them. Let us handle your benefits and address and clarify any questions you may have. If you areinterested in learning more about PEOs or captive insurance,connect with us today!
