Financial savings arise for U.S. employers using captives to manage their health benefit plans. Jim Hoitt of Berkley Accident and Health explains how self-funded healthcare plans are better for employers than fully insured commercial health plans.

More than 10 years ago, there was emerging interest among U.S. employers in a new concept: using group captives as a way to manage the risk of employee health plans. At the time, employers faced an enormous challenge. The U.S. healthcare industry was characterized by a lack of pricing transparency, skyrocketing costs for medical services and pharmaceuticals, and market inefficiencies.

These issues, which continue today, led to increased interest in self-funded healthcare plans, which provide employers with more control and transparency than fully insured commercial insurance plans. This trend reached an all-time high in 2020, with 67% of U.S. workers enrolled in self-funded health plans, according to the Kaiser Family Foundation’s 2021 Employer Health Benefits Survey.

Read full article: Captive International – Health Benefit Captives Pay Off

This is not a legal opinion. Always seek your own counsel before making changes to your benefit plan.

Insurance coverage is underwritten by Berkley Life and Health Insurance Company and/or StarNet Insurance Company, both member companies of W. R. Berkley Corporation and both rated A+ (Superior) by A.M. Best. Not all products and services may be available in all jurisdictions, and the coverage provided is subject to the actual terms and conditions of the policies issued. Payment of claims under any insurance policy issued will only be made in full compliance with all United States economic or trade and sanction laws or regulation, including, but not limited to, sanctions, laws and regulations administered and enforced by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”).