Substantial tax savings possible thanks to change in tax extenders law,
says industry expert
DALLAS – The passing of a new law could help shrewd healthcare professionals
save more than $1 million on their taxes, according to Jeff Blankinship,
a veteran of the healthcare industry and founder of Surgical Captive (www.surgicalcaptive.com), a new firm focused on developing and administering turnkey Captive Insurance
Companies for physicians and business owners in the healthcare industry.
The bill — Protecting Americans from Tax Hikes (PATH) Act of 2015
— was signed into law by President Obama on December 18, 2015. The
legislation extended more than 50 expired provisions of the tax code,
along with other tax compliance and administrative changes. One such change
concerns a modification of section 831(b) of the Internal Revenue Code
that raises the cap on premiums for Captive Insurance Companies from $1.2
million to $2.2 million.
Business owner's form privately owned Captive Insurance Companies to
protect themselves from the risks associated with business ownership.
Rather than paying insurance premiums for a policy to third-party insurers,
premiums are paid to the Captive. Pre-defined risks are underwritten with
the assistance of a third-party actuarial team. Any reserves realized
from unpaid claims remain an asset of the Captive, protected from creditors
of the business and available for investment or disbursement to the Captive owners.
Surgical Captive works with healthcare professionals nationwide by forming
and managing Captive Insurance programs. Once a Captive Insurance Company
is created, its owners are able to use their capital in more effective
ways than paying insurance premiums to commercial insurers, such as expanding,
investing, and growing.
The passing of PATH presents a "golden opportunity" for healthcare
professionals that create Captive Insurance Companies in 2016, Blankinship
says. "Business owners with Captive Insurance Companies can write-off
up to $2.2 million in pre-tax revenue in 2016 — that's about
$1.3 million in potential tax savings. This isn't a loophole; it's
black letter law of the IRS tax code. There is no better time for healthcare
professionals to research the numerous benefits of establishing a Captive
Surgical Captive has the team and resources to help healthcare professionals
maximize the opportunities present within the tax laws. The firm works
with a third-party actuarial team to help set policy limits and legitimize
the amount of insurance coverage, and uses third-party tax and legal partners
to conduct all of the filings directly with the IRS and captive management.
"Most captive management companies try to handle everything in-house,
but when that happens, it can create conflicts of interest and improperly
managed Captive Insurance Companies," Blankinship says. "Through
our unique business model, the economic advantages of a Captive Insurance
program will become readily apparent."
To learn more about Surgical Captive and take the first step in forming
your own Captive Insurance Company, visit
About Surgical Captive
Surgical Captive is dedicated to delivering unique self-insurance solutions
for ambulatory surgery centers, physicians, and business owners in the
healthcare industry. By liberating businesses from the market cycles of
commercial insurance companies through the formation of Captive Insurance
Companies, Surgical Captive provides wealth opportunities and asset protection
with outstanding financial results. Contact us today to learn if a Surgical
Captive solution is right for you by visiting