The Future of Health Care Captives

Health care captives received a "checkup" during a Cayman Captive Forum 2014 pre-Forum tutorial on the topic of “Healthcare Captives--Past, Present & Future.”

The Insurance Managers Association of Cayman (IMAC) is hosting more than 1,300 attendees at the 22nd Cayman Captive Forum this week in Grand Cayman.

Tom Hermes, Towers Watson, and Julie Robertson, Honigman Miller Schwartz and Cohn LLP, were the presenters. Mr. Hermes, who has served as a consultant in conducting feasibility studies and helping form health insurance captives since the late 1970s, and Ms. Robertson shared their perspectives on the historical development of this captive sector and the reasons behind that development.

With the caveat that they are not futurists, the panelists suggested the future of health care captives will include the following.

• Being part of the fabric of health care organizations
• No longer considered “an alternative”
• More guidance on tax issues than in prior years
• Proven adaptability in the past will be carried forward, including diversity of coverage
• New models/structures will provide significant change
• More mergers and acquisitions