ManagedComp said the program is scheduled for Jan. 1, 2003, implementation, and will be available to both nursing homes and assisted living facilities. It will also offer risk management and captive services.

"As the market has hardened, underwriters have continued to shy away from classes of business with a potential for injuries," said Rick O'Brien vice president, marketing, with ManagedComp.

"The nursing home risk has never been an underwriter's darling, if you will, and as the economy has become more difficult, that just shrinks the capacity that is available in the marketplace."

Woburn, Mass.-based ManagedComp Inc., an underwriter and third-party administrator, said it has provided specialized service to nursing home clients since 1987. The new program offers facilities an alternative to difficulties in the existing insurance marketplace, the company said.

HealthShield will be offered by an "A-rated" fronting insurer. Specific and aggregate reinsurance coverage and the captive domicile are being finalized based upon the makeup of the founding group, the company said.

"We're the only program in the country that I'm aware of that marries the workers' comp with the professional and general liability for this class of business," Mr. O'Brien said. "They really are the top two insurance issues any of those facilities face."

The captive, he explained, gives employers "an ownership stake in the program and therefore control over the program."

Bob Barrese, executive vice president, ManagedComp, and 25-year veteran of the property and casualty industry added that program advantages include coverage availability, stable and predictable costs, focused risk management services, and greater control of this critical business expense. Group members also share any underwriting profits and investment income.

"All underwriting profits and investment income that normally fall to the insurance company's balance sheet belong to the members in a captive program," Mr. Barrese said. "The ability to turn a cost center into a profit center is a unique benefit of the HealthShield program."

ManagedComp's new HealthShield program for extended care facilities is available in Georgia, Maryland, Mississippi, New York, New Jersey, North Carolina, South Carolina and Tennessee. Prospective clients in these states must have:

? A strong financial condition,

? A better than average loss history

? $250,000 total premium across all program lines

? An ability to provide security for risk layers.

"While all alternative market programs carry with them a level of risk, ManagedComp's expertise in underwriting, superior program administration and focused managed services designed to prevent losses will greatly mitigate the level of risk," Mr. Barrese said.

ManagedComp recently announced a $5.4 million distribution to members in a similar program in Massachusetts.
Facilities interested in participating in HealthShield should contact Bob Barrese at 781-938-2146 or [email protected].