COLUMBIA CAPTIVE INSURANCE COMPANY

Reliable Protection for Healthcare Professionals

As a physician, healthcare facility owner-manager or other healthcare practitioner, you could be hit with an audit by a Recovery Audit Contractor (RAC) that would cut off your cash flow for six months or more. Columbia (CCIC) is a captive insurance company that can protect you.

Can You Afford to Lose Medicare/Medicaid Reimbursements for Six Months or More?

I’ve Never Had a Problem – Why Now?• CMS is converting to a new coding

system that will contain nearly 18 times as many codes and moving its electronic claims standard to HIPAA Version 5010.

• Audits resulted in the collection of $2 billion in 2012 and are projected to collect $4.5 billion in 2013.

• Result -- errors will escalate along with improper payments leading to more frequent, intensive audits.

• RAC contractors get paid on a percent of their recoveries, so look out.

COLUMBIA CAPTIVE INSURANCE COMPANY

Can You Afford to Lose Medicare/Medicaid Reimbursements for Six Months or More?

You May Not Think You’re Exposed But With More Audits You Can Get Hit• Practitioners face a dramatic increase in RAC audits.

• If any wrong billings are found, auditors can go back three years and penalize errors.

• Suspected billing irregularities can lead to a suspension of Medicare and Medicaid payments during investigation.

• Reimbursements can be halted for six months or more.

Even the Most Scrupulous Practitioners are Being Audited as RAC Contractors Look for Business• With more regulations, reporting requirements and

burdensome oversight, it’s easy to make mistakes.

• Innocent errors in billing and occasional over or under payments happen in the best run physician’s offices.

• Cash flow interruptions can easily exceed $200,000. Ultimate recovery is uncertain after the feds exercise the right of recoupment and offset against amounts withheld.

• To interrupt cash flow for six months or more can cripple your practice

True Story – This Could Happen to You• Owner of senior care facility notified that

Medicare reimbursements cut off after providing charts to RAC auditor.

• Facility owner asks why?

• Auditor says, “have not had time to review your charts.”

• Owner asks how long will it take?

• Auditor says, “six to 12 months and no reimbursements until review complete.”

The Solution – Income Replacement Coverage• New product from CCIC is tailored to help physicians withstand

unpredictable cash-flow disruption.

• Income replacement coverage will pay you a portion of the amounts withheld as a result of an Order of Suspension of Payments issued by CMS or its contractors.

• Payments will be made monthly until the suspension has been rescinded or until the policy terms/limits are exhausted.

• Select providers may be able to purchase a portion of CCIC. Your portion may be able to elect -- under Internal Revenue Code §831 (b) for companies that receive premiums up to $1.2 million -- to pay tax on investment income at the corporate rate and accumulate surplus (capital) from underwriting profits free from tax. You should consult the private placement memorandum and your tax and other advisors.

You Can Sleep Nights Knowing Your Cash Flow is Secure• Coverage will be designed to suit your practice profile with a

flexible schedule of limits, retentions and co-payments.

• Limits up to $1 million are available with no interest due on funds advanced during regulatory suspensions.

• Policy offers optional coverage to indemnify for defense costs and audit expenses if these exposures are not covered elsewhere.

• When reimbursements resume, the insurer is repaid. Meanwhile, you can maintain your practice without worrying about lost revenue.

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Initial Participation Fee ...................................$15,000

Initial Capitalization ............20% of first year premium

Annual Maintenance Fee .......14% of annual premium not to exceed $50,000

PricingStructure

COLUMBIA CAPTIVE INSURANCE COMPANYcolumbiacapt ive.com

Ted Hall, PresidentCHSI Captive Insurance Managers, LLC770 Pilot Road, Suite I Las Vegas, NV 89119

Phone: 702-736-4415Email: thall@mychsi.com