Health care system temporarily withdraws captive benefit funding plan
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WASHINGTON—Via Christi Health Inc., a Wichita, Kan.-based health care system, has temporarily withdrawn its application seeking Labor Department permission to fund life insurance risks through the U.S. Virgin Islands branch of its Cayman Island captive insurance company.
Under the proposal, the policies would be written by Minnesota Life Insurance Co., which would reinsure the risk through the Virgin Islands branch. The branch was established in September to reinsure Via Christi employee benefit risks.
But in a move described as temporary, the health care system has withdrawn its application.
“We're simply re-evaluating our application and anticipate resubmitting,” David Hadley, Via Christi senior vp-finance and chief financial officer, said Wednesday in an email.
Via Christi, which says it is the largest provider of health care services in Kansas, fully or partially owns or manages 12 hospitals in the state. It generated $1.09 billion in operating revenue in fiscal 2010.
Via Christi's application came in the wake of a spurt of activity in the captive employee benefits funding arena.
Last month, the Labor Department gave Microsoft Corp. tentative authorization to use the Vermont branch of its Bermuda captive to reinsure life insurance and accidental death and dismemberment policies. Microsoft already uses the Vermont branch to reinsure long-term disability coverage.
In November, Google Inc. filed an application with the Labor Department for approval to fund benefit risks through its Hawaii captive insurer.
