Calif. PSOs are insurance companies that will provide an alternative to health maintenance organizations. There is a great deal of interest in these organizations, which can be formed once HCFA finalizes all the regulations governing them, Nyhan said. As physicians band together in PSOs they can be expected to go to the capital markets to raise operating funds and to form medical malpractice reciprocal risk retention groups, Nyhan said. Work in Progress Maine, which enacted a captive law last year, amended it in March to allow captives to reinsure life, health and disability insurance provided in connection with an employee benefit plan of the single or association parent. The amendment also clarifies that captives may write title and financial guaranty insurance as well as reinsure credit life and credit health.
Maine has one application pending.
Captive domiciles need a niche to attract business. With this addendum to its law, Maine may develop a niche for employee benefits.