In the recent bankruptcy of Senior Health Insurance Company of Pennsylvania, the judge sided with policyholders and blamed the company's financial woes on underpricing of policies and poor investments. According to the judge, the company faced a $1.2 billion deficit. This is a huge deficit in any company, but what happened to the Pennsylvania company's policyholders? This article explores some of the issues involved.
Policyholders opt in or out of plan
The Pennsylvania Rehabilitator has proposed rate increases of 0% to 500% for Senior Health Insurance Company of PA policyholders. In Phase One, policyholders will not be required to make a decision as to whether to opt in or out of the plan. Instead, they will be required to choose a plan that lowers LTC benefits or offers a self-sustaining premium.
Rate increases range from 0% to 500%
If you're a senior, you've probably heard about the Senior Health Insurance Company of Pennsylvania rate increases that range from 0% to 500%. If so, you're not alone. Most senior health plans are subject to rate increases based on certain qualifying events, such as having a child or moving from out-of-state. A number of other qualifying events may also trigger an increase, such as attaining the age of 26 while covered by their parents' policy. These are known as Special Enrollment Periods.
The Pennsylvania Department of Insurance regulates health insurance rates, and each insurer must file its proposed rates with the state's insurance department. These rate increases are carefully scrutinized to ensure that they are appropriate and do not discriminate against any group. Moreover, the Department of Insurance must approve any rate increases before they can go into effect. The process of calculating the top offers only takes two minutes, and you'll be shown links to top carriers, such as Cigna, UnitedHealthcare, and Keystone. Other carriers, such as Humana, Aetna, and Capital Blue Cross, do not offer the Marketplace contract.
The Pennsylvania Department of Insurance regulates health insurance rates, and each insurer must file its proposed rates with the state's insurance department. These rate increases are carefully scrutinized to ensure that they are appropriate and do not discriminate against any group. Moreover, the Department of Insurance must approve any rate increases before they can go into effect. The process of calculating the top offers only takes two minutes, and you'll be shown links to top carriers, such as Cigna, UnitedHealthcare, and Keystone. Other carriers, such as Humana, Aetna, and Capital Blue Cross, do not offer the Marketplace contract.
Benefit cuts are "draconian"
The former insurance commissioner of Pennsylvania has taken over the company Senior Health Insurance Company of PA, which filed for bankruptcy in 2010. Altman has all of the authority of the Senior Health insurance company's board of directors and managers. Her goal: to make the company solvent. Unfortunately, the changes have made things worse for many people. Here's a breakdown of why the benefits cuts are so draconian.
Former commissioner of insurance's lawsuit against state's long-term care rehabilitator
A former commissioner of insurance is suing the state's long-term care re-habilitator in an effort to stop the program. In a lawsuit filed Dec. 27 in Pennsylvania's Supreme Court, three state regulators and 27 others opposed the plan. This is not surprising, since well over half of the U.S. states oppose such plans, and three incoming NAIC officers, including three former NAIC presidents, have worked in state insurance regulation for years.
The lawsuit seeks a court order to block the state's long-term care re-habilitation plan, which is expected to go live in April 2022. Meanwhile, at least 30 state attorneys general have joined Ommen's lawsuit, arguing that the plan violates state law. The plan's implementation date has not been set, and policyholders are required to mail their choices back by March to be considered for the changes.
The lawsuit seeks a court order to block the state's long-term care re-habilitation plan, which is expected to go live in April 2022. Meanwhile, at least 30 state attorneys general have joined Ommen's lawsuit, arguing that the plan violates state law. The plan's implementation date has not been set, and policyholders are required to mail their choices back by March to be considered for the changes.
