The Partners Group, based out of Washington and Oregon, announces a position paper covering the new healthcare concept of becoming self funded through a captive. This position paper addresses the problem of health plan rate increases employers are experiencing with no claims data to justify the rising rates. It also addresses the difficulty in understanding true plan costs and what exactly employers are paying for due to a lack of transparency into what is driving their costs, as well as whether implementing a wellness program will actually have an impact on lowering their costs.
This position paper, “The Captive Option for Self Funded Employer Healthcare”, covers the benefits of captives, how they work, and the type of employers who are good candidates. Additionally it includes the options and steps employers can take to move in this direction if they’re not a candidate out of the gate. Solutions provided address controlling risk, stabilizing rates, and various methods of achieving cost savings that are tied to captives including stop loss protection alternatives.
According to Gary Alton, Managing Partner of The Partners Group Employee Benefits Division, “More employers are finding the self-insured route is a good solution for coping with the new ACA- Affordable Care Act regulations coming in January of 2016, and captives are now making self-funded insurance more feasible for mid-sized employers. This position paper illustrates how the captive option is significantly impacting the bottom lines of employers with the advantageous options they provide.”