Willis Group Holdings PLC : Willis Announces Accountable Care Organization Insurance Liability Policy
03/29/2012| 12:20pm US/Eastern
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Innovative Solution Offers Unique Coverage for Health Care
Organizations Facing New Risks Associated with Forming ACO's
As the health care industry moves to adapt its health care delivery
models following the Patient Protection and Affordable Care Act of 2010,
Accountable Care Organizations (ACO) have landed squarely at the center
of the discussion. Many organizations are planning to form Accountable
Care Organizations (ACO), defined as networks of health care providers
that band together to provide the full continuum of health care services
for patients. This model employs various payment methodologies to reward
health care organizations such as hospitals, physicians and payors based
upon the delivery of high-quality care to improve health outcomes while
slowing growth in expenses.
While adoption of this model will vary in execution, forming an ACO will
bring together affiliated and non-affiliated stakeholders in a variety
of structures creating new risks and insurance challenges for health
care organizations. Participants or owners of an ACO could face
increased exposures in the form of:
-
Privacy Issues
-
Regulatory Risks
-
Vicarious Liability
-
Employment Issues
-
IT Network Development
-
Group Billing Challenges
-
Capital Investment Needs
-
Legal challenges created by interplay of State and Federal Laws
-
Distribution of Shared Savings and/or Loss Payments to stakeholders
Because these new exposures will be shared among multiple stakeholders,
reliance on contractual arrangements and traditional insurance and risk
management programs maintained by the individual stakeholders fall short
of providing the necessary asset protection for these new structures. As
an example, most risk management programs for health care organizations
and physicians do not customarily include coverage for health care
administration services such as claims administration, selection and
de-selection of providers and/or distribution of payments to providers.
In addition, the direct and/or vicarious liability created by the acts
of the entity also creates coverage issues for individual stakeholders
in their individual insurance and risk management programs.
To meet the demand from the health care industry, Willis today
introduced the Accountable Care Organization Liability Insurance Policy.
This innovative product, developed in conjunction with IronHealth, a
unit of Ironshore, offers a robust solution for stand-alone ACO's
addressing the risks and insurable liabilities associated with forming
an ACO. This product delivers a range of solutions including coverage
for:
-
Directors & Officers Liability
-
Managed Care Operations Liability
-
Medical Professional Liability
-
General Liability
-
Third Party Privacy Protection and First Party Privacy Protection
-
Fiduciary Liability
-
Billing Errors & Omissions Liability Option
Additional coverage features include a broad definition of insured,
coverage for ACO managed care/claims administration services, and
affirmation of the policy as primary for the ACO regardless of the
existence of other insurance. The program also includes protection
against antitrust and regulatory issues.
"This product is the first of its kind available on the market,
underscoring Willis' commitment to innovation and helping our clients
prepare for industry trends," said Frank Castro, National Health Care
Practice Leader, Willis North America. "Willis is dedicated to
understanding our clients' industries and their needs and stands ready
to deliver the best solutions possible. Health care delivery model
changes will happen regardless of the fate of health care reform and we
are very excited to partner with IronHealth to meet this client need."
ABOUT WILLIS
Willis Group Holdings plc is a leading global insurance broker. Through
its subsidiaries, Willis develops and delivers professional insurance,
reinsurance, risk management, financial and human resource consulting
and actuarial services to corporations, public entities and institutions
around the world. Willis has more than 400 offices in nearly 120
countries, with a global team of approximately 17,000 employees serving
clients in virtually every part of the world. Additional information on
Willis may be found at www.willis.com.
Willis Group Holdings plc
Media:
Colleen McCarthy, +1
212-915-8307
colleen.mccarthy@willis.com
or
Investors:
Peter
Poillon, +1 212-915-8084
Peter.Poillon@willis.com
© Business Wire 2012
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