BATON ROUGE — Within the coming weeks, Insurance coverage Commissioner Jim Donelon will take extra steps to guard Louisiana long-term care policyholders of Senior Well being Insurance coverage Firm of Pennsylvania (SHIP) from doubtlessly disastrous price will increase or profit reductions.
In January 2020, SHIP was positioned into rehabilitation by the Commonwealth Court docket of Pennsylvania. The corporate is presently projected to have a $1.2 billion greenback deficit however SHIP has not but been positioned in liquidation.
In an try to rehabilitate the insurer, the appointed rehabilitator created a plan that the Louisiana Division of Insurance coverage (LDI) believes will diminish the division’s authority to guard Louisiana policyholders.
As presently proposed, Pennsylvania’s plan provides state insurance coverage regulators solely two choices. The primary is to permit a Pennsylvania entity to lift charges in Louisiana for SHIP policyholders, in some circumstances over 500%, with charges being set by a Pennsylvania courtroom with none evaluation by the LDI. The second choice would scale back advantages for all Louisiana policyholders of the insurer.
“The scenario is untenable for Louisiana policyholders,” stated Commissioner Donelon. “Regardless of shopping for long-term care insurance coverage to make sure their independence in superior age and paying on their insurance policies which might be protected by state warranty funds for many years, they now threat — on the common age of 86 — being compelled into chapter 11 and put out of their present dwelling conditions. I’ll do all the pieces in my energy to guard these Louisiana shoppers from having the warranty fund safety guidelines modified at their hour of want by a Pennsylvania regulator.”
Becoming a member of with 22 different states that oppose Pennsylvania’s proposed plan, together with South Carolina, Commissioner Donelon will file in Louisiana courtroom for an injunction in opposition to the plan in an ongoing try to guard shoppers from this insurance coverage trade pleasant proposal.
Beforehand, the Louisiana Division of Insurance coverage (LDI) filed swimsuit in federal courtroom asking the decide to declare the Pennsylvania plan unconstitutional and block it from taking impact. That swimsuit was dismissed as a result of, on the time, Pennsylvania had not but accepted the plan. The Pennsylvania courtroom has now accepted the plan and that approval is being appealed to the Pennsylvania Supreme Court docket.
In case you are a Louisiana policyholder with Senior Well being Insurance coverage Firm of Pennsylvania, or have a member of the family with a coverage, please electronic mail LDI at [email protected] or name us 1-800-259-5300. Senior Well being Insurance coverage Firm of Pennsylvania shouldn’t be confused with Louisiana Senior Well being Insurance coverage Info Program, a free program by the LDI that helps beneficiaries higher perceive their Medicare protection choices and advantages.
Concerning the Louisiana Division of Insurance coverage:The Louisiana Division of Insurance coverage works to enhance competitors within the state’s insurance coverage market whereas aiding people and companies with the knowledge and assets they must be knowledgeable shoppers of insurance coverage. As a regulator, the LDI enforces the legal guidelines that present a good and steady market and makes sure that insurers adjust to the legal guidelines in place to guard policyholders. You may contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.