Dupage Policy Journal

Many businesses are making the switch from traditional health insurance to captive health insurance for benefits like more flexibility and cost reductions.

Everlong Captive Consulting Group is among the companies making it possible for businesses to reap the benefits of switching to captive health insurance. “At Everlong, we reimagined and redesigned employer-based healthcare by building high-performance health insurance captives that break with tradition," said company founder and CEO  Doug Truax. "We are able to turn back the tide of ever-increasing medical insurance costs caused by lack of control and transparency using our unique Captive Cell insurance model."

Here's what you should know about health insurance captives and why companies like Everlong Captive Consulting Group are playing a key role in the industry:

— Health insurance captives may seem attractive to businesses interested in managing their healthcare costs. Compared to traditional insurance, captives give their members far more control over the insurance program, which makes it easier to adjust coverage to more specific needs. This control gives businesses the flexibility to tailor their coverage choices to better meet their business needs.

— Improved risk management is another highlight of captive health insurance. Captives provide lower costs and more stable pricing to their members, as the members of the captive share the risk. Risk management improves through reduced exposure to risks and losses because captives allow policyholders to have more control over underwriting and claims handling, according to Jay Booth, president of Capital Group Benefits.

— A health insurance captive differs from traditional insurance in that it is a wholly owned subsidiary insurer that provides risk-mitigation services for its parent company or a group of similar businesses, Everlong says. Employers can sign up as participants in the shared plan and as member-owners of the program. They agree to spread the risk among themselves using a stop-loss insurance model. The purpose of this model is to keep costs down over time and also reduce volatility.

Companies like Everlong Captive Consulting Group are innovating by reimagining and redesigning employer-based healthcare by building high-performance health insurance captives that break with tradition. Everlong, founded in 2012 and headquartered in Downers Grove, Illinois, facilitates the formation and ongoing operation of high-performance health insurance captives for employer owners and their brokers who are willing to buck the current insurance system.

Everlong says, "Members save significant amounts of money in two ways. First, they take the profits that health insurance carriers make and pay that money back to themselves as captive owners through an innovative insurance and funding solution. Second, they reduce long-term claims costs through improved employee health. Most Everlong members see annual health plan cost increases in the low single digits. An employer with 100 employees can realize savings of about $500k over a five-year period without cutting benefits or shifting costs to employees."