The Massachusetts Division of Insurance announced today that a court has granted its request to place Minuteman Health into receivership to protect policyholders and health care providers.
Receivership is often part of or a prelude to a bankruptcy filing.
Bay State Insurance Commissioner Gary D. Anderson has been named "receiver" for Minuteman Health, which essentially puts him in control of the company.
The Massachusetts-based health insurance co-op, which insures about 27,000 individual members and three dozen small group members in New Hampshire, announced in June that it would not offer insurance in 2018 because its capital and surplus had been significantly reduced over time.
That decision was made in cooperation with Massachusetts and New Hampshire regulators, who had been working together to closely monitor the company's financial health.
Since then, Minuteman's financial condition has deteriorated, and the company's surplus was reduced to a level that triggered the action in Massachusetts.
Regulators expect that the company will be able to meet its obligations to members and health care providers through the end of the year.
"New Hampshire residents who have health insurance through Minuteman Health can expect they will be covered through the end of 2017," said New Hampshire Insurance Commissioner Roger Sevigny. "While rehabilitation has been initiated to protect consumers, their experience as Minuteman policyholders should not change materially through Dec. 31."
Anderson said he was prompted to act because the company's financial reserves are thin, but he like Sevigny believes that the company has adequate funds to pay all insurance claims between now and the end of the year.
An informational session is scheduled for 10:30 a.m. Friday at the Massachusetts Division of Insurance, 1000 Washington St., Boston, hearing room 1E.
Minuteman's New Hampshire policyholders will have to choose a new plan for 2018 through healthcare.gov, with open enrollment running from Nov. 1 to Dec. 15.
Remaining carriers on the Obamacare exchange at healthcare.gov have announced rate hikes for 2018 averaging 44 percent.
(c)2017 The New Hampshire Union Leader (Manchester, N.H.)
