Until now, there have been few financially feasible methods for mid-sized companies to self-insure and responsibly take the risk.
Captives sometimes get a bad rap.
When businesses hear the word "captive," they typically assume the solution is only for property and casualty, far too complex for their company, or simply unnecessary to meet their needs. However, benefits stop-loss captives provide undeniable cost savings and are extremely simple to implement.
Health care costs continue to chart a staggering upward trajectory. According to the Millman Medical Index, a family of four in the U.S. spends an average of approximately $28,166 per year on health care and prescriptions, up significantly from $23,215 in 2014. Employers continue to subsidize their employees' health care costs by paying an average of 56 percent of the total costs. As health care costs rise, this burden will only intensify, and companies need to find a way to contain these expenses.
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