Independent Contractor Captives
More and more companies are moving towards utilizing a true Independent Contractor (IC) workforce. There are more individuals that want to have the freedom of being an IC so that they can set their own hours, work from home and to sell their services to multiple employers at the same time. Both, Employers and Individuals see the benefit of this arrangement. The largest single drawback to this situation and what has kept most people from becoming an IC are Health Benefits. When you move from a Group Plan(s) to Individual Plan, your premiums usually double or sometimes triple. They lose the pooling and purchasing effect of a large group.
The only solution historically has been for Companies to illegally allow the IC to purchase from the Group Plan and hope that you don't get caught by the State, Federal Regulators or from the Reinsurer finding out and not covering a large claim that was incurred by the IC. There are serious fines and penalties the State and Federal Regulators could impose against an Employer acting as an Unauthorized Insurer and or an illegal MEWA.
Benefit Captive Re has solved this problem through the use of a Captive. The program looks and feels just like the current plan that the current employees are participating in and legally allows the IC to enjoy the same benefits. The employer can retain all of their IC's and even grow their IC base by offering full medical benefits at group rates.
This program is increasing utilization in the Transportation Industry. Motor Carriers are using this to grow the Owner Operator/Independent Contractor base by differentiating the benefits that they offer their IC's. Few Motor Carriers can say that their benefit package contains full Medical coverage at group rates. Although the popularity of this program is growing, there are still many carriers that have not heard about it just yet.
