How a Health Benefit Captive Works
Director of Employee Benefits Captive Practice
A health captive enables a group of companies to join together and form their own insurance company. That means members share risk, and in doing so they create greater purchasing power, cost consistency, and long-term risk management. So, instead of paying premiums to an insurance company (which in turn becomes profit for said insurance company), the group contributes to a shared dividend pool. That money is then rewarded back to members when there’s good performance.