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Captive insurance arrangements more common: IRS ruling provides guide with regard to tax issues pertaining to the now-popular protected cell companies.

Publication: Managed Healthcare Executive
Publication Date: 01-MAY-08
Format: Online
Delivery: Immediate Online Access
Full Article Title: Captive insurance arrangements more common: IRS ruling provides guide with regard to tax issues pertaining to the now-popular protected cell companies.(LETTER OF THE LAW)

Article Excerpt
Many healthcare entities have explored certain alternative risk transfer arrangements as a means for insuring, or perhaps self-insuring, various exposures. The use of captive insurance arrangements has been a common approach, and thus, "protected cell companies" have become popular vehicles.

Most protected cell companies involve a commercial insurer that sponsors a captive insurance company. That captive has several segregated cells which are funded by business insureds to cover their own risks. These arrangements are often used by small- to mid-sized...

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