MEDICAL INSURANCE CAPTIVES

In the current business environment, the cost of health insurance for many employers just continues to rise and is now the second largest annual expenditure, trailing only payroll expense. Nationally the average annual cost per family is almost $14,000 per year.

This puts many employers in a difficult position as they have very few product and carrier options and scarce information about how the healthcare system actually works. In many cases they often don't even know what claims they have or where their premium dollars go.

This lack of transparency inherent in the current system prevents employers from taking control of the cost of health insurance. Their only option has been to accept the double digit annual increases they experience each year.

Interesting Statistics—Is it time for your company to promote Personal Responsibility?:

• 70% of all health insurance claims are the result of preventable and modifiable conditions—lifestyle choices!
• 74% of health insurance claims are the result of diabetes, cardiovascular disease, cancer, and obesity.
• 33% of Americans are obese and an additional 40% of Americans are overweight.
• 7% of Americans have diabetes and an additional 26% of Americans are pre-diabetic.

Incentives Can Work!

• Did you know that employers can provide participation based incentives/disincentives?
• Did you know that employers can provide results based incentives/disincentives?
• If properly structured, participation and results based incentives/disincentives will help create a culture of good health, lower medical claims, and improve employee productivity.

How UA Healthcare Can Help:

• Our Medical Insurance Captive allows medium sized employers (100-750 employees) to take advantage of proven tools, techniques, and risk reduction strategies that are used successfully by large employers with over 1000 employees.
• Employers using our risk reduction strategies are experiencing rate increases under 3%, far better than the double-digit insurance rate increases most employers are experiencing.
• A captive provides complete control over health insurance costs by offering transparency. A Medical Insurance Captive actually creates financial stability and helps to increase profits.
• Our Medical Insurance Captive encourages a healthier workplace and provides employees with a better quality of life, both at work and at home.

How A Medical Insurance Captive Works:

• A group of employers form a Medical Insurance Captive in an effort to reduce the cost of health insurance. It can be formed with a variety of employer groups such as:
  1. Hospital Groups and related entities such as physician practices, skilled nursing facilities, etc.
  2. Private businesses in conjunction with the local community based hospital system
• Each employer has the ability to offer any medical plan design within the captive.
• Each employer's rates will be based on the demographics and risk inherent in their own group.
• Employees with chronic conditions are identified and medical professionals engage these employees on a proactive basis to help them better manage their health.
• The Medical Insurance Captive eliminates carrier profit, minimizes state premium taxes, and uses proven risk reduction strategies.
• The result is a likely savings of 10%-20% in year one, and significantly greater savings in future years.
• The savings remain in the captive and work to stabilize the costs in succeeding years and increase profitability.

Key Features:

• Provides access to the same tools, techniques, and risk reduction strategies offered by the largest of employers.
• Eliminates carrier profit.
• Minimizes state premium taxes.
• Offers ability to eliminate or modify state mandated benefits.
• Offers complete plan flexibility and transparency.
• Encourages working together with "like-minded" employers.
• Wellness websites for each employee and telephonic coaching is included.
• All money not spent on claims are returned or retained by employer.

We anticipate an employer's savings of 10% - 20% in year one and significantly more savings in the future.

Interested In Learning More?

Please contact us to learn more about this new Medical Insurance Captive. We will contact you to any answer any questions you may have.