Evergreen Receivership Conference Call

August 22, 2017

Today we spent an hour with the Maryland Insurance Administration, Attorney for the Maryland Attorney Generals Office, Insurance Commissioner Al Redmer and spokespeople for the receivers of Evergreen Health.

Since insurance companies can't go bankrupt, they go into receivership.  The receivers will run the company with one main goal in mind, to protect the consumer.  There are not going to be any renewals with Evergreen or new business written.

Many of your employees have received letter indicating that HMO's are not covered under the Guarantee Fund.  This is correct.  However they are protected under court order and Maryland Statute.

Claims that were being processed before the Receivers took over (Around 8-1) are put on the back-burner and paid at the discretion of the Receivers. Some may never be paid.   Claims after 8-1 are given priority and paid first.  According to the Court Order, page 7, section 13, providers are not allowed to balance bill you, try to seek payment from you for claims submitted beyond your normal co-pay and/or refuse to see you.  Those that are, are violating the court order.  

Also, here are a list of FAQ's regarding the Receivership of Evergreen.

We have been in touch with each and every Evergreen client and are planning a strategy to best work with this situation that makes sense for your firm.  

As always, please feel free to contact me at 410-239-5009.

Respectfully,

Ben

Maryland Looking At High Premium Increases On Exchange As Cigna Drops Out

The Baltimore Sun  (6/21, Cohn) reports Cigna Health and Life Insurance Co. has decided to not sell plan on the exchange next year as CareFirst BCBS is proposing an average increase of 52 percent for its plans sold on the exchange. The other two remaining insureres on the Maryland exchange, Kaiser Foundation Health Plan and Evergreen Health, are seeking increases of about 25 percent and 65 percent respectively. The requested rate increases were made at a hearing held by the Maryland Insurance Administration.

These increases are being sought by insurance companies through the State of Maryland for Individual Medical Plans both on and off of the exchange.