Captive Employee Benefits Program

Posted On: March 6, 2018 | By: Abigail Cutler

What is your risk tolerance? Many would argue they are either risk-seeking or risk-averse – you’re either all in or you’re not, 0 or 100% tolerant. When it comes to the traditional models of employer healthcare insurance, funding arrangements are the same: you’re either fully insured or self-funded. When you’re self-funded, you take on more of the risk, but by adding a captive program, you give yourself the opportunity to earn a dividend when your claims experience is favorable.


A Captive Employee Benefits Program is an insurance plan that pools companies for the purpose of sharing employee benefits insurance risk. Employers join a captive with other companies who are like-minded with the goal of controlling costs to form a risk pool, and typically hire an actuary to determine the capital and premium needs associated with insuring the risks.


Employers who are diligent about risk management, financial management and member wellness program participation will recognize significant savings over the premiums charged by a typical domiciled insurance company.


Axion’s consultants have a combined experience of over 65 years, including extensive background in working with Medicare Cost Plus plans. If you would like to learn more, contact us today!