Many veterinary organizations already come together in “buying groups” to purchase supplies, among other things, to save money. Recognizing this, we asked ourselves, “If our clients can buy those things together, why not health insurance?” Our captive is doing just that. The risk pooling and self-insurance approach creates much greater transparency and it allows the collective to see exactly what factors are driving expenses. The other key is working with a homogeneous group of individuals that face similar health risk profiles (i.e. veterinary hospitals). To learn more about captives, click here to download our whitepaper, "The Basics of Health Insurance Captives."
Alera VetEmCap is an alternative risk program designed for veterinary practices and practice groups. VetEmCap allows employers to take advantage of the benefits of a self-funded employee health benefits plan while potentially reducing volatility and costs through participation in a group captive.
Our program is designed for employers who are frustrated with the current insurance marketplace, and tired of dealing with carrier and plan design changes. If you are fed up with health plan increases that have no claims data to justify rising rates, as well as the lack of transparency into what is driving your costs, this program might be the right solution for you.
What makes our captive unique?
- The Participants – VetEmCap is limited to Veterinary Organizations, a homogeneous group of individuals that have similar risk profiles.
- Risk Management Requirements – Participants are required to implement a risk management strategy aimed at changing how healthcare services are purchased inside of their plan to control and reduce claims.
Why do Employers Join a Captive?
Self-funded employers typically decide to join a group captive because of the:
- Traditional advantages of self-funding
- Greater scale for predictability and reduced volatility
- Ability to collaborate with other like-minded employers
- Sharing of best practices for health risk management
Who is a good fit for our captive?
Ideal candidates for our captive program are:
- Financially stable
- Have 70-500+ benefit-eligible employees
- Have a forward-thinking management team
- Have good communication with employees on health plan benefits
- A Strategic Long-Term Buyer: Moving into a captive or a self-funded arrangement is not something that you just try out for a year. It is a commitment. It is something you must go into with an understanding that you’re moving down this path because there are other things than just pure cost savings you are looking for, such as transparency, access to claims data, and more predictive modeling.
- Focused on Risk Management: Employers who get into the captive must be focused on risk management to make sure we’re controlling the risk on an on-going basis, and are willing to implement robust health & wellness programs.
Phase 1 – Join the captive by self-funding your health plan.
Phase 2 – Implement Risk Management Strategy; to control costs long-term, you must change how healthcare services are purchased inside of your plan. There are many effective ways to do this, and we’ll help you identify the right solution for your group.
Phase 3 – Monitor the data, evaluate performance, and make adjustments as needed.