Vermont Hospital to Bring Captive Insurance Firm to State

The University of Vermont Health Network is going to bring a wholly owned insurance company home to Vermont.

The UVM Network’s captive insurance company, which provides malpractice insurance for its medical providers, is currently located in Bermuda.

The network’s board recently voted to bring the subsidiary home to Vermont because of the state’s reputation for providing a predictable and stable regulatory environment.

Captive insurance companies are wholly owned subsidiaries of large corporations that want to insure themselves against property loss, casualty and liability. In 1981, Vermont passed a law allowing the companies to operate in the state.

The change in location will have no impact on the providers or on the cost of health care, but the state will collect approximately $50,000 a year in taxes on premiums.

Copyright 2018 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Source