UVM To Relocate Captive Insurance Company

January 3, 2018

Church Street Burlington January 2018The University of Vermont Health Network will be moving its captive insurance company to Vermont from Bermuda.

The UVM Health Network website said, “The action comes as the result of a unanimous decision by the Board of Directors of VMC Indemnity Company, Ltd., the health network subsidiary that provides medical malpractice insurance coverage for its medical providers.

“Because of its reputation for offering a predictable and stable regulatory environment, Vermont has become a leading location for captive insurance companies, a standard self-insurance practice option for academic medical centers that can make malpractice insurance less expensive than what is available through commercial insurance companies.

“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.”

“As a result of the decision, a non-profit corporation will be established to become the UVM Health Network’s captive insurer, and it will seek approval from the Internal Revenue Service to operate as a tax-exempt organization, a process that could take up to a year.

“This is great news for Vermont and validation of our incredibly strong captive insurance industry,” said David Provost, Deputy Commissioner, Vermont Department of Financial Regulation.

“We welcome the University of Vermont Health Network and are pleased to count them among the growing list of health care organizations located here.”

“The change in location will have no impact on the providers insured by the plan, or on the cost of health care in Vermont. The cost of making the conversion is expected to be approximately $35,000-$50,000. The state of Vermont will collect approximately $50,000 annually in premium taxes.”

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Comments (2)

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  1. Family Man says:

    And so the exodus begins, one job at a time.

  2. I heart 441 says:

    Vermont Insurance company relocates to Vermont. Not sure if this because of Trumps new tax plan or because it’s a morality reason.
    Trumps plan may see more companies relocating to the States but at the same time other companies are still relocating to BDA.