As part of its expanded offerings for Las Vegas Metro Chamber of Commerce members, Chamber Health Options is introducing a brand-new captive insurance option for businesses with 20 – 1,000 employees. The Chamber Group Captive is a self-funded option for businesses that want to manage their costs and risks. A group captive is an insurance facility formed by companies joining together to reduce the cost of insurance. Each participating company desires to control their own risk, and member companies generally maintain good loss histories and effective risk management programs. It provides cost savings through risk management, loss control and wellness, yet is predictable for its members. Captive models have been long-established in other markets and within many large businesses throughout the country. Now, through the unique Chamber Health Options model, Metro Chamber members can have the same access that large businesses and industries have enjoyed for decades.
Following are some of the basics to help you decide if the Chamber Group Captive is right for your business.
- The Chamber Group Captive provides premium cost savings to group members as well as competitive and cost-effective advantages, such as minimizing some taxes and eliminating adjusted community rating, for employers who subscribe to it.
- A captive provides better access to claim information, cash flow benefits and more flexibility in benefits offerings and network providers. These benefits are possible based on the concept of shared risk. Together, the large group member employers of the Metro Chamber manage their own health care costs by collectively assuming risk, resulting in more control and flexibility within their plan.
- It is a turnkey solution with every company paying for its own risk.
- In a captive, certain fixed charges associated with a normal premium plan become variable. If claims are lower than the premium, the employers get a return of those dollars instead of the insurance company. In addition to more control and flexibility throughout the process, participation in this dividend helps smooth volatility and minimizes financial impact.
- Companies participating in the Chamber Group Captive have full access to claims data, allowing for complete customization of plan design.
Each employer participating in the Chamber Group Captive receives a stop-loss policy from an “A” rated insurance company headquartered in the United States and admitted in Nevada. Each participating employer’s maximum costs are outlined in the proposal and participation agreement. “The Chamber Group Captive will uphold the tradition of trust and service that Chamber Insurance & Benefits has been providing to Chamber members for nearly 30 years,” says Bill Wright, president of Chamber Insurance & Benefits. “This exciting new offering for larger businesses will give our members more opportunities as they navigate the changing landscape of healthcare.”