Company slashed healthcare costs by a quarter by creating a captive


Blue Ox Enterprises, reduced its healthcare spend by 25 percent in 12 months by moving to a self funded captive program, according to Health Compass Consulting. 

This example is just one example of many that form a wider pattern, in which around 30 percent of healthcare costs are wasted, according to the Institute of Medicine. 

Blue Ox, a commercial and residential land development company with 120 employees, said creating a captive not only cut costs, but allowed it to offer a voluntary onsite mobile Wellness Initiative at no cost to employees.

Meanwhile McCoy Federal Credit Union (MFCU), which has 220 employees, said it made savings of over $1.2 million within 48 months of moving to a self-insured platform in 2014. Before that it had been fully insured for over 30 years.

Tod Mazzocco executive vice president at MFCU, said: “The self-insured program has not only given us much greater control over our healthcare dollars, it has also allowed us to improve the healthcare benefits to our employees by adding a private direct primary care healthcare facility for our employees. The result has not only been happy employees, but healthier employees as well, which is our goal."

“Since most Americans receive healthcare benefits from their employer, the opportunity for American businesses to solve one of our biggest challenges is immense,” said Health Compass Consulting.

Blue Ox Enterprises, McCoy Federal Credit Union, Health Compass Consulting, Institute of Medicine, Tod Mazzocco

Captive International