Linda Jones: We may see the insuring of ACO risks
in captives, but much more research is required. I
believe privacy and IT risk will increase with
ACO’s, and more are considering incorporating it
into the captive. Finally, I would expect to see more
health benefit products to be included. More are also
considering Stop Loss, as a part of their Population
Health Management efforts.
William
Cassett
a
Honigm Partner
an Mil
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and Co
hn LLP wartz
T: +
E: wca 1 313 465 734
ssetta@
honigm 8
an.com
William Cassetta: The next few years will be very
interesting for the healthcare captive industry as hospitals
and other providers adapt to the Affordable Care Act.
Captives will be challenged to help their parent companies
be more efficient, and doing so will involve much more than
the traditional medical malpractice, general liability and
workers compensation lines of business. Developments of
“clinically integrated networks” will result in new business
relationships among providers that are not commonly
owned, and there will be opportunities to explore insurance
coverage arrangements for these new business partners.
Medical information will be exchanged electronically, and
privacy breach issues will need to be addressed through
creative risk financing. And just as captives have been
instrumental in controlling medical professional liability
costs for healthcare providers through very effective risk
mitigation programs, captives will be challenged to find
ways to mitigate economic risk associated with furnishing
population health management services. It will be exciting.
What should be new target areas to facilitate new
captives, considering many existing ones will likely be
consolidated?
Tom Jones: Focusing on the US market, in addition to the
ACO risks above, stop-loss coverage for self-insured health
plans especially group captives aggregating exposures of
numerous small to medium size employers.
Linda Jones: Programs that include stop loss or ACO risks
as a result of PPACA.
William Cassetta: It is hard to guess where to look for
the next great captive insurance opportunity. These new
opportunities often emerge because of developments within
an industry that might have little or nothing to do with
insurance. The best advice I can give is that everyone in the
captive insurance industry needs to remain vigilant for new
opportunities, be willing to take on new challenges and try
to apply some of the principles that have worked for us in
the past.
Looking at group capti ٕ̰