From: Captive Review
There’s a strategic case for group healthcare captives to help private equity and associations regain control over spiraling costs, argues Spring’s Prabal Lakhanpal
As healthcare costs continue to rise unpredictably, employers are seeking innovative strategies to regain control over insurance expenditures.
While traditional member-owned or participant healthcare group captives have been around for decades and are still an excellent outlet for small to mid-sized companies, the newly emerging variation is a more specific group captive that leverages buying power and commonality of insureds.
This is being driven by the desire of the insureds better to own their own insurance destiny and steer away from group captive solutions which might have substantial associated expense loads. These variations usually involve an association, pre-existing group of companies (informally or formally such as a private equity or fund structure) launching a programme to drive the benefits of self-funding with the power of collective risk-sharing, offering tailored health coverage, improved cost control and enhanced data transparency.
