Dana Sheppard, associate commissioner of the District of Columbia Department of Insurance, Securities & Banking (DISB) has explained that Washington DC is not in favour of medical stop-loss captives.
In a recent interview with the Captive Insurance Council of the District of Columbia, Sheppard explained that the District of Columbia fully supports the policy objectives of the Accountable Care Act, and that the city is working diligently to establish its health care exchange.
But despite the support the DISB has decided that, due in part to its relatively small size, all individual and small group products must be sold on the exchange.
“Regarding medical stop loss captives, Washington, DC is not in favor of allowing small employers located in DC to self-insure their health care risks, including the establishment of medical stop loss captives, if their motivation for doing so would result in removing young and healthy persons out of the exchange, and leaving older less healthy employees in the exchange. We believe this will turn the District's exchange into a high risk pool, a result the District would obviously wish to avoid,” said Sheppard.
