Should your company's medical benefits be insured through a captive insurance company?

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By Kevin Fitzgerald , Michael Davis , Troy M. Filipek, Travis J. Grulkowski | 06 July 2011

Industry commentators have recently advocated that companies insure their employee medical benefits through a captive insurance company. While sometimes advisable, covering all medical benefits through a captive may result in higher costs and larger administrative burdens.

This Bloomberg Law Reports article describes the benefits and drawbacks associated with captive insurance companies, and analyzes the efficacy of providing medical benefits of U.S. employees as an employee benefit, either for full coverage or stop-loss coverage.