Captive Insurance Planning For the Middle Market

Turning the Tide: Combating Uncertainty in Healthcare Reform with Captive Insurance

The future of healthcare in the United States remains uncertain – even for practitioners in private practice. During President Obama’s time in office, many healthcare providers moved from the fee-for-service model to value, or performance-based “capitation contracts,” under the Affordable Care Act. Medical providers were paid a set dollar amount per month by the government, per patient, regardless of how much care a patient required. The more treatment a patient needed, the less profit the provider earned. Providers would essentially be incentivized for positive results, but they continue to be a calculated gamble.

Forming a captive insurance company may help offset potential capitation risks by pre-funding variable losses. Capstone explores how a captive arrangement can help healthcare providers with this alternative risk planning option can offer broader, more tailored coverage. Read our captive insurance blog entry now for more.