Reducing Healthcare Costs for Construction Companies

The Power of Specialized Captive Insurance

In a conversation with Jared Taylor, Adam Bonsky, CEO and President of the Associated Builders and Contractors Insurance Trust, dives deep into the benefits of a specialized captive insurance program for the construction industry. The Construction Healthcare Alliance, managed by the ABC Insurance Trust, offers a national homogeneous captive, designed exclusively for construction companies. Bonsky emphasizes that industry-specific challenges require tailored solutions, and construction companies know best when it comes to addressing healthcare concerns within their workforce.

Challenges Facing Construction Companies

Bonsky boldly states, “there’s no industry that has more challenges when it comes to employee benefits than construction.” With over 30 distinct challenges identified, construction companies face hurdles in affordability, participation, and compliance. Common issues include high deductibles leading to delayed care, seasonal work cycles, and difficulties in providing healthcare to a largely mobile or rural workforce. To address these, the Construction Healthcare Alliance provides solutions like cost containment strategies, spreading out premium payments, and offering unique administrative support to ease the burden on employers.

Driving Long-Term Healthcare Improvements

Beyond reducing costs, Bonsky’s vision includes improving overall healthcare for construction workers. The goal is to transition from transactional care to relational care through initiatives like direct primary care and job site clinics. By establishing ongoing relationships between workers and healthcare providers, companies can prevent costly medical interventions down the road. This focus on personalized care models aims to address both the physical and mental health challenges unique to the construction workforce.

Opportunities for Brokers

Bonsky encourages brokers with experience in self-funded plans to partner with the Construction Healthcare Alliance. These partnerships can offer construction clients innovative, cost-saving healthcare solutions while allowing brokers to grow their practices within the construction space. Brokers have the opportunity to customize their fees within the plan’s structure, providing flexibility and ensuring long-term relationships with clients.

By offering a captive insurance solution that directly addresses the complex challenges faced by construction companies, the Construction Healthcare Alliance paves the way for more affordable, effective healthcare coverage tailored to the industry.