Many companies now report that group health insurance costs are climbing at a faster rate than corporate revenue. And it’s not just the employers that are facing increasingly harsh headwinds; employees are struggling to cope with payroll deductions for insurance premiums that are further eroding their ability to make ends meet.

Now more than ever, employers are seeking new and innovative ways to break through the headwinds of today by catching the tailwind of tomorrow’s insurance solutions, like captive health insurance.

"Traditional group health insurance is broken," an Everlong Captive spokesman said.

A health insurance captive is a wholly owned subsidiary insurer that provides risk-mitigation services for its parent company or a group of related companies, according to Everlong.

The employer, along with other similar-sized enterprises, sign up to become participants of the plan. The health insurance captive model has enabled big companies to reduce financial risk and the amount their employees needed to pay for health care – additionally supporting talent acquisition and retention efforts, Everlong said. Over time, smaller companies saw the advantages of the captive model and adapted it to suit their needs, according to the company, and they were able to overcome their smaller workforce by joining forces with other similarly sized employers.

"There are an overwhelming amount of flaws and issues with traditional health insurance," Everlong said. "Captive Health is breaking down these issues and solving them for small businesses and brokers."

Traditional group health insurance is structured to “respond” reactively, Everlong said. Health insurance captives are designed to allow for proactive claim reduction efforts through innovative solutions to control plan costs and improve employee health. This forward-thinking framework provides the employer with the ability to exercise more control over costs by proactively improving the health outcomes of their employee population, resulting in lower claims overall, the company said.