Reinvesting captive dividends or plan profits into healthcare prevention, precaution and early treatment can make a significant cost mitigating impact on rising medical costs on employee benefits programmes, according to a panel speaking at Zurich’s Captive Dialogue Day on 25 June.
Medical inflation is currently running at about 10% a year, which means that if a company has around 70% of its EB programme running through its captive, then the costs for the captive will be doubling every eight years.
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