Association Expands Board
AUSTIN — The Texas Captive Insurance Association (TxCIA) has expanded its board of directors from
three to eight members to help meet
the “unexpected level of demand” for
captive insurer operations in the state.
TxCIA was organized in June 2013
following passage of Senate Bill 734
by Sen. John Carona, R-Dallas, which
authorized the Texas Department of
Insurance (TDI) to license captives to
insure the risks of parent companies
and affiliates, as well as controlled unaffiliated businesses.
TDI has licensed five captives under the legislation and has received applications for others, TxCIA reports.
The following individuals comprise
the newly-approved directors.
Ellyn Casazza, senior vice president, •
Marsh Captive Solutions Group,
Wayne Dauterive, director of risk •
management, Metro National
Josh Magden, vice president of in- •
surance and institutional marketing, Sage Advisory Services, Ltd.,
Ed Polansky, of counsel, Weaver •
LLP, San Antonio.
Philip J. Tortorich, partner and •
head of captive insurance services,
Katten, Muchin, Rosenman, LLP,
The new directors join these three
founding members of the association.
Mike Arnold, business consultant, •
Blanco, board chairman.
Irving Pozmantier, Pozmantier Wil- •
Louis Schendl, Timberview Cap- •
tive and Mesquite Captive, Peoria,
At its first convention in February,
TxCIA announced it plans to ask the
2015 Legislature to amend and expand the law allowing formation of
“Our inaugural conference … was a
real homerun,” Arnold said.
“We were hoping to get 30 attendees
to break even, and ended up with 110,
representing a real ‘who’s who’ from
the state Legislature and TDI, as well
as the captive industry worldwide.
“All the feedback we received was
overwhelmingly positive and encouraging,” Arnold commented.
Arnold reports the board currently
is working on several projects, including ongoing collaboration with TDI
and the Legislature, continuing education efforts for professional advisors in
Texas, expanded membership services,
a membership recruitment drive and
next year’s conference.
Rep. John Smithee, R-Amarillo,
chairman of the House Insurance
Committee and House sponsor of the
captive insurance bill, has described
the 2013 legislation as a “bit of an
experiment” and said he anticipates
that lawmakers will be willing to make
changes to the law in 2015 to make it
In addition to expanding the board,
TxCIA has hired Strategic Association
Management, a professional association
management firm headed by Megan
Woodburn, Austin, to provide services.
By Bill Kidd, Austin Correspondent
Insurance Groups Oppose
IRO Fee Hike
AUSTIN — Associations repre-
senting workers’ compensation insur-
ers say they oppose increasing review
organization (IRO) fees — one of
three options for fees proposed in in-
formal draft rules under review by the
Texas Department of Insurance (TDI)
— and suggest that lowering the fees
would be more appropriate.
Deadline for comments to TDI was
Input Sought on Fee Levels
The department asked for input on the current IRO fee amounts
and whether the amounts should remain the same, be decreased, or be
Current Rule 12.403 establishes
two IRO billing tiers.
Tier One reimbursement is $650
for independent review of medical or
surgical care rendered by a doctor of
medicine or osteopathy.
Tier Two reimbursement is $460
for independent review of health care
services rendered in the specialties of
podiatry, optometry, dental, audiology, speech-language pathology, master social work, dietetics, professional
counseling, psychology, occupational therapy, physical therapy, marriage
and family therapy, chiropractic, and
chemical dependency counseling.
ICT’s Nichols Comments
The Insurance Council of Tex-
as (ICT), in comments filed by Steve
Nichols, ICT workers’ compensation
services manager, said the current fees
“are more than adequate,” and may be
too high “when one considers Califor-
nia’s IRO review fee of $195 and Ten-
nessee’s fee of $224.”
“ICT has learned that the IROs are
seeking a 43 percent increase for both
of the fees currently set out in Rule
“The IROs are also seeking a new
fee of $1,500 for case review of life-threatening medical conditions,” Nichols said.
Nichols said those changes “would
create a barrier for health care providers who wish to seek an IRO review
for non-network medical necessity disputes,” and add “significant unwarranted additional cost” to the workers’
At present, “there is no IRO access
problem,” Nichols reported.
“In fact, there are currently 40 independent review organizations seeking
medical necessity dispute case referrals
“With a more than adequate supply
of IROs at the current rates, there is
little justification for raising the reim-