Traditional health insurance isn't just losing ground – it's crumbling beneath our feet. And it's happening faster than most industry veterans predicted. While the usual players scramble to patch their leaky boats with premium hikes and benefit cuts, a revolution in healthcare financing is quietly gaining momentum.

Let's be honest about what's broken. Traditional health insurance programs operate on an outdated chassis: spread risk, pool resources, pay claims. Simple enough in theory. But in practice? It's become a byzantine maze of misaligned incentives, hidden costs, and diminishing returns. Large carriers are more focused on shareholder value than member outcomes. Brokers get squeezed between rising costs and client expectations. And employers? They're left holding the bag, watching their healthcare spend spiral while employee benefits shrink.

The numbers tell a stark story. Premium increases have outpaced inflation by 3-4x over the past decade. The average employer now spends $22,463 per family for health coverage – a number that's risen by nearly 50% since 2015. Meanwhile, deductibles have doubled, out-of-pocket maximums have skyrocketed, and prescription drug coverage has become increasingly restrictive.

But here's what's really causing traditional programs to lose ground: they're built on fundamentally flawed assumptions.

First, they assume that one-size-fits-all solutions work. They don't. Every employer group has unique demographics, risk profiles, and utilization patterns. Forcing them into standardized plans is like expecting everyone to wear the same size shoe.

Second, they operate on the principle that more layers between payer and provider somehow create efficiency. They don't. Each intermediary adds expense without adding value. Think about it: why should an employer pay a premium to an insurance carrier, who then pays a TPA, who then pays a PBM, who then pays a provider network, who finally pays the actual healthcare provider? Each step takes a cut, driving up costs while reducing transparency.

Third, they believe that limiting access to data somehow protects their business model. Wrong again. In today's world, employers need real-time insights to make informed decisions about their healthcare spend. Black box solutions no longer suffice.

Unlike carrier-run or commoditized captive programs, our broker-built health captives take a fundamentally different approach. With transparent, fee-based compensation, we reject growth at any cost and hiding behind the status quo. Our selective membership brings high performers together without the subsidy drag. 

Consider the evidence: Since inception, we’ve achieved an industry leading -3.2 % stop-loss trend while other programs face double-digit increases year over year. We’re returning the captive layer surplus to members instead of paying dividends to shareholders. And we’re doing it while members experience better benefits and better outcomes with lower costs.

The shift isn't just about numbers, though. It's about control. Traditional programs keep employers at arm's length from their own healthcare spend. They obscure data, limit options, and create artificial barriers to change. Modern solutions flip this model on its head, giving employers direct access to their data, control over their plan design, and the ability to make decisions based on their specific needs.

The writing is on the wall. Traditional health insurance programs aren't just losing ground – they're becoming obsolete. Forward-thinking employers are already moving toward more transparent, flexible, and cost-effective solutions. Those who cling to traditional models will find themselves paying more for less, watching their benefits erode while their costs continue to climb.

The question isn't whether traditional programs will continue to lose ground. The question is: how long will employers continue to accept a broken status quo when proven options exist?