MPC Meets in Florida

The Members’ Participation Council (MPC) met in Clearwater, Florida, on January 14 and 15, 2015. The Freestone Insurance Company (Delaware), SeeChange Health Insurance Company (California), Medical Savings Insurance Company (Indiana), and Penn Treaty Network America/American Network Insurance Companies (Pennsylvania) Task Forces held meetings, and the MPC Executive Committee met as well.

In addition to the task force reports below, the General Session featured a privileged, closed-session presentation by the Lincoln Memorial/Memorial Service Life Insurance Companies (Texas) Task Force. The Administrators Education Steering Committee conducted a presentation on health assessments with Bart Boles (Texas), Lowell Miller (North Carolina), Janis Potter (Illinois), Chuck Renn (Missouri), and Paul Peterson (NOLHGA). GA Laws Committee Chair John Mathews (Allstate) updated attendees on the committee’s plans for 2015, NOLHGA President Peter Gallanis provided an update on recent activity in financial services regulatory modernization, and MPC Chair John Colpean briefed attendees on MPC Executive Committee activity.

  Staff Contact - Sean McKenna Freestone Insurance Company (Delaware)

Jack Falkenbach (Delaware) updated attendees on the liquidation of this property and casualty company, which wrote some group accident and health policies. While all of the policies were canceled before liquidation, there are approximately 40 known claims. Only three states—Delaware, Georgia, and Texas—are expected to be affected, though the claims are in other states as well. More information will be provided as it becomes available.

Task Force Chair – Mike Marchman;   Staff Contact - Joni Forsythe CoOportunity Health (Iowa)

Task Force Chair Pam Olsen (Nebraska) reported on the receivership of CoOportunity, which is a Consumer Operated and Oriented Plan (CO-OP) created under the Affordable Care Act. The company only wrote business in Iowa and Nebraska and was placed in rehabilitation in late December 2014. Because of its status as the first CO-OP to be placed in receivership, the task force is evaluating novel legal and other issues arising from a possible liquidation order and how these issues might affect other guaranty associations should CO-OPs in other states be placed in receivership.

Task Force Chair – Pam Olsen;   Staff Contact - Bill O'Sullivan SeeChange Health Insurance Company (California)

Task Force Chair Janis Potter (Illinois) reported that the company’s policies were canceled on December 31, 2014, but policyholders have a year following the termination date to file claims. Almost all of the projected liabilities are in California and Colorado. Claims had been handled by a third-party administrator (Loomis, with a network access arrangement with CIGNA), and the SeeChange Health Insurance Company MPC unanimously passed a resolution authorizing the task force to enter into agreements with Loomis to continue administering claims and with CIGNA to continue the network access arrangement.

Task Force Chair – Janis Potter;   Staff Contact - Joanna Akiyama