Provided by:  Jennifer Kirschenbaum, Esq.

 February 6, 2018




Hi Jennifer, 

I missed a meeting for a new RRG last week, SmartMD.  Do you know anything about it?

Dr. I


I do.  Disclaimer: I actually participated in drafting some of the  contracts for management, and I was able to make the meeting last week.  I’m not privy to any inside information, and I do not have any knowledge of the financial end.  

What I do know that may be helpful or relevant to our NY community is – that SmartMD is a Risk Retention Group for Dermatologists, Allergists and Dentists interested in self-insuring.  By self-insuring, You own the RRG. RRGs, in general, function in a manner similar to an insurance company, but are also intended to serve as an investment vehicle.  Reason being, the owners decide who is  eligible to join the RRG, and whether a "bad boy (or girl)" should be thrown out at any time.   The intention for specialty specific formation, as I understand it, is because the specialties are low risk, and actually owned and controlled by the doctors, this is actually a business investment rather than a premium contribution to an insurance. Keeping payouts low is key; doing so allows money to be available for a monetary return on investment through policy holder dividends for "good performance" and a shareholder dividends owed to Owners (which you would be if you elected to go with the RRG and be accepted in).    Bottom line, if you’re a Dermatologist, Allergist or Dentist practice owner, the RRG might be a way better solution than just dumping money into premiums you’ll never see again. Especially considering the marketplace and other options in the New York Metropolitan area. 

Certainly I am not endorsing dropping your current carrier today or saying the RRG will necessary be successful, but it may be worth having your practice and current policy looked at.  For information on the RRG or to see if you can join, call or email the program manager is H 3 W Program Management, LLC; ask for Greg Schaefer - reachable at 646.892.8822  Worth a look.