Breaking the Cycle: How Captives and Level-Funded Plans Help Employers Fight Soaring Premiums

Group health insurance rates are on the rise again—some forecasts show 2026 premiums jumping 10–20%, with small businesses hit especially hard. For employers tired of unpredictable renewals and shrinking plan flexibility, there’s good news: you’re not stuck in the status quo.

Healthcare captives and level-funded insurance plans are providing employers with a much-needed alternative to the traditional fully insured market.

🔍 Level-Funded Plans:   These hybrid models combine the predictability of a monthly premium with the power of self-funding. Employers pay a fixed rate that covers claims, administration, and stop-loss protection. If claims are lower than expected, they get a refund—a reward for promoting wellness and managing risk.

Healthcare Captives:   Captives offer even more control. By banding together with like-minded employers, groups can pool risk, customize plan design, and tap into long-term cost stability. Captives reward strategic thinking—focusing on prevention, data analytics, and smarter benefit design.

Why it matters:

• Say goodbye to "take-it-or-leave-it" renewals.

• Gain transparency and ownership over plan performance.

• Create incentive structures that align with your company’s health goals

In a world where premium hikes are becoming the norm, these models offer more than just cost containment—they offer freedom.