Senior Professional in Human Resources (SPHR) Certification Practice Exam 2026 - Free SPHR Practice Questions and Study Guide

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What aspect of health insurance captives makes them appealing to employers?

They are mandatory for all companies.

They limit employee benefits.

They provide greater insight into claims data.

Health insurance captives are appealing to employers primarily because they provide greater insight into claims data. This feature allows employers to have a more granular understanding of their employees' health care utilization patterns, enabling them to make informed decisions regarding plan design, risk management, and wellness programs. With access to detailed claims data, employers can identify trends, address potential health issues proactively, and create strategies to improve employee health and potentially lower costs over time.

Moreover, the transparency that comes from analyzing claims data can help employers take a more active role in managing their health plans rather than relying solely on traditional insurance companies. This proactive approach fosters a culture of health within the organization and can lead to better overall outcomes for both employees and the organization itself.

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They are cheaper than traditional insurance plans.

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