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UVM Health Network To Relocate Captive Insurance Company to Vermont

Vermont Flag-SF
January 04, 2018

The University of Vermont (UVM) Health Network has announced it will move its captive insurance company from Bermuda to Vermont.

The change is the outcome of a unanimous decision by the Board of Directors of VMC Indemnity Company, Ltd. (VMCIC), the health network subsidiary that provides medical malpractice insurance coverage for its medical providers. The six-hospital system has 4,000 healthcare professionals that serve the residents of Vermont and northern New York.

As a result of the decision, a nonprofit corporation will be established as the UVM Health Network's captive insurer. The captive will also seek approval from the Internal Revenue Service to operate as a tax-exempt organization. 

The process is expected to take up to 1 year to complete, and the cost of making the conversion is expected to be approximately $35,000–$50,000. The state of Vermont will collect approximately $50,000 in premium annual taxes. 

"We had an analysis done comparing the two locations, and it is clear we can continue to provide low-cost, predictable insurance coverage to our providers if the company is located in Vermont," said John Brumsted, M.D., president and CEO of the UVM Health Network and VMCIC board member. "We strongly believe in doing business locally whenever possible, so we're happy that being in Vermont is the best business decision in this case."

"Our captive insurance industry is a shining example of what can be accomplished when we work together to provide and grow good jobs here in Vermont," said Governor Phil Scott. "We're pleased the UVM Health Network is moving their captive insurance plan home to Vermont and hope this sends the message loud and clear to more organizations that this is a great place to do business, and the best place to domicile captives."

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