For those new to captive health insurance, you’re really going to love the benefits.
What is captive health insurance?
Simply put, it’s a unique approach to traditional health insurance methods.
Group captive insurance is a form of partial self-funded insurance where a group of companies create its own insurance company — the captive, or in our case, Allied Health, a BevCap Captive Group Company — to provide coverage for some or a portion of its risks (e.g., workers compensation, employee healthcare). Captives allow businesses to manage risks more effectively and potentially reduce costs compared to traditional health insurance. Companies in captives have more control over their insurance coverage and claims process, access insurance for risks that are difficult or expensive to insure through traditional markets, to stabilize insurance costs over time.
Captive insurance can be a powerful tool for businesses, corporations and groups of companies looking to optimize their insurance strategies, manage risks more effectively, and potentially reduce costs over the long term. However, setting up and operating a captive requires a solid partner like Allied Health to administer regulatory requirements, financial implications, and risk management strategies tailored to the specific needs of the business.
Captive Insurance Benefits
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Captive insurance allows Allied Health to have more control over insurance costs. By retaining premiums within the captive rather than paying them to third-party insurers, Allied Health can potentially reduce costs associated with traditional insurance premiums, overhead, and administrative fees.
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Allied Health offers flexibility in designing insurance policies tailored to the specific risks and needs of the collective membership. This customization can ensure that the health coverage provided aligns closely with the actual risks faced by our members, potentially leading to more comprehensive and cost-effective insurance solutions.
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Captive insurance can enhance a member company's overall risk management strategy. By directly managing and financing its own risks, Allied Health gains deeper insights into its risk exposures, implement more effective risk mitigation strategies, and potentially improve its overall risk profile.
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Depending upon member location and circumstances, captives may offer certain tax benefits. Premiums paid to captives are generally deductible as business expenses, and captives may be able to accumulate reserves on a tax-advantaged basis.
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Allied Health can contribute to the long-term financial stability of the membership group by providing consistent insurance coverage tailored to its needs. This stability can be particularly beneficial in industries with unique or volatile risks where traditional insurance markets may be less predictable or responsive.
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Allied Health allows its member companies to have more control over claims handling and settlement processes. This can lead to faster claims resolutions, reduced claims administration costs, and better alignment of claims handling.
We move mountains
for our members.
At Allied Health, we have more than a decade of captive excellence to ensure our members experience cost savings without cutting corners on health insurance. Join Allied Health and see the advantage.