“Do not save what is left after spending but spend what is left after saving.”
— Warren Buffett
If you are a business owner, this is the time of year when your 2018 budget is completely blown apart as your benefits broker tells you medical costs are up 45% over 2017 levels. Not only is this 25% higher than most businesses budget for, but employee morale plummets up and down the org chart after the new rates are introduced company-wide. And the typical response the benefits broker is “that is just the market”.
However, there are a growing number of companies that budgeted correctly for their 2018 medical coverage while still increasing their employee network and benefit options. And instead of increasing healthcare spending and employee costs by 25-45%, they actually reduced costs (including employee out-of-pocket costs), 15-40% from the previous year. How are they doing this? They are using healthcare captives. Interested in captives? Listen here.