The ODI is considering legislation that would require new captive insurance companies headquartered in Ohio to be subject to regulation by the Ohio Department of Insurance. This regulation would exempt any captive carrier already doing business in the state. An alternative to the commercial insurance market, captives are similar to self-insurance plans. ODI Director Ann Womer Benjamin said the measure is needed to make sure the companies seeking to insure Ohio physicians have the financial stability needed to guarantee defense of malpractice claims, and, if necessary, payment of jury awards or settlements. The director said she has been told that some doctors are being led to believe that all captives seeking business in Ohio are properly funded when they are not. The legislation, which might not be introduced until the beginning of the 126th General Assembly, wouldn't affect captives that are currently operating in Ohio. At a recent meeting of the Ohio Medical Malpractice Commission where this legislation was discussed, Mr. Raymond Marvar, vice president and general counsel of Cleveland Clinic Health System's Western Region, said his system's use of the captive model saves it between 5% and 10% versus the cost of purchasing malpractice insurance on the commercial market. He noted that captives bring on more risk for plan administrators, but also offer greater control and less regulation than traditional insurers. He stated that captives face the same pressures as commercial insurers, and that captives, also, are sometimes forced to withdraw coverage of physicians who have high loss records.