Forward-Thinking Firm Realizes Benefits of Health Captive

Captives, Employee Benefits


V-Soft Consulting


By normal marketplace standards, V-Soft Consulting couldn’t complain: With its health insurance costs increasing at a rate of 8% annually, the IT solutions firm was actually doing slightly better than a lot of companies. In other words, when it came to V-Soft’s health insurance plan, nothing was necessarily “broken.”

However, V-Soft was certainly open to options that could help it buck the seemingly inevitable annual cost increase. More than that, it was interested in gaining some control over its second largest annual expenditure. And that’s why M3 suggested an alternative to V-Soft’s self-funded plan: a captive insurance program.


Almost two years into its captive insurance membership, the numbers speak for themselves:

  • Year-over-year 8% increases have turned into a 0% increase for year 1, and year 2 is on track for an actual decrease.
  • V-Soft received a year 1 dividend of $70,000; year 2 will yield approximately the same.

V-Soft is experiencing real cost-savings—try hundreds of thousands of dollars real. And the bigger picture? The firm can exercise more control over its health insurance costs because it’s essentially a co-owner of its own insurance company. And that means V-Soft has full access to its insurance data and can create meaningful risk management strategies to optimize its plan’s performance.

Getting Perspective:  The Benefits in a Captive

Instead of just accepting the insurance marketplace’s yearly cost increases, instead of remaining ineligible for dividends and paying premiums year after year (which turned into profits for its insurance  company), V-Soft basically asked M3, “Is there really a better way?” As it turns out, the answer is a resounding, “Yes, there is!”

Today, V-Soft can put cost-savings back into its company, implement its growth strategies more effectively, and bring an invigorated focus to meeting the business and technology challenges of its clients.

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