What You Need To Know About the Basics of Captive Health Coverage
If you operate a small business that still needs to find a viable healthcare plan option for its employees, you may have started to research the possibility of captive health insurance. This unique insurance type allows your company to provide coverage through joining a parent company. Here are the basics.
Captive Health Coverage Can Provide Insurance Via a Parent Company
When you join with other companies under a parent company, you may be eligible for captive health coverage. This insurance option could:
- Provide health insurance to all of your employees who sign up
- Help you tailor health coverage to your company’s precise needs
- Allow you to enjoy potentially flexible financing and underwriting
- Allow you to cover smaller deductibles than some traditional health insurance plans
It May Require Your Company To Bring New Employees on Board
Due to their complexity, some companies with captive health coverage may need to hire one or more new employees to manage the details. These employees would:
- Coordinate set-up costs, pay the associated bills, and ensure related finances are sorted out
- Ensure company-wide compliance and appropriate subsidiary maintenance
- Take care of related administrative tasks
If your business has considered opting in to captive health insurance as a way of securing health coverage for your employees, it’s important to make sure you understand all the basics. This insurance type can help you tailor insurance coverage to your business’s needs and could require you to bring extra employees on board to handle the details.