Highlights\u00a0\u00a0<\/strong><\/p>\n Health insurance does more than cover medical bills \u2014 it\u2019s a powerful tool for attracting and retaining top talent.<\/p>\n Yet, rising healthcare costs challenge small and midsize businesses that want to offer competitive benefits without straining their budgets. While large corporations have long benefited from self-funded insurance, many smaller companies think this cost-saving option remains out of reach.\u00a0<\/a><\/p>\n Group medical captives change that equation, making self-funded plans accessible to companies with as few as 25 employees. Self-funded insurance through a group captive helps both employers and employees win with better benefits at lower costs.<\/p>\n Healthcare benefits present one of the biggest challenges for small and midsize businesses. In a nutshell, 88 percent of employers1<\/a><\/sup> still prioritize health-related benefits, partially because 65 percent of employees2<\/a><\/sup> turn down offers from companies that don\u2019t offer them.<\/p>\n Traditionally, smaller companies rely on fully funded plans and pay fixed premiums regardless of claims. But with average single premiums rising 6 percent3<\/a><\/sup> and family premiums soaring 7 percent in 2024, these costs can quickly strain a company\u2019s resources. Many SMBs are seeking more cost-effective alternatives.<\/p>\n If your business provides company health benefits, you\u2019re probably familiar with the standard fully funded insurance model: Select a plan annually, pay fixed premiums and let the insurer handle claims.<\/p>\n While this approach offers convenience and predictable costs, it also has its drawbacks, such as:<\/p>\n So, what sets self-funded insurance apart? Rather than paying fixed premiums to an insurance company, employers allocate funds to cover employee claims as they occur.<\/p>\n This hands-on approach gives businesses greater control over their healthcare spending and allows them to customize benefits to meet their team\u2019s needs better.<\/p>\n\n
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Traditional Employer-Sponsored Health Insurance Is Becoming Unsustainable for Small Companies<\/h2>\n
Self-Funded Insurance vs. Fully Funded Plans: What\u2019s the Difference?<\/h2>\n
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