Captive Insight Vol I | Page 55

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 ler Sch 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 ٕ̰