MPC Meets in San Francisco

The Members’ Participation Council (MPC) met in San Francisco on July 22, 2015. The SeeChange Health Insurance Company (California) Task Force held a meeting, and the Penn Treaty Network America/American Network Insurance Companies (Pennsylvania) Task Force conducted a presentation for affected guaranty associations. 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. MPC Executive Committee Banking Practices Subgroup Chair Charles Gullickson (South Dakota) briefed attendees on the findings of the subgroup’s survey of guaranty association administrators. During his update on recent activity in financial services regulatory modernization, NOLHGA President Peter Gallanis took time to honor former Louisiana Life & Health Insurance Guaranty Association Board Chair and NOLHGA Board member Virginia Kilpatrick Shehee, who passed away in July 2015, and to express the MPC’s thanks for decades of service to Chris Chandler (Prudential Insurance Company of America), who plans to retire this year. MPC Chair John Colpean also briefed attendees on MPC Executive Committee activity.

  Staff Contact - Sean McKenna CoOportunity Health (Iowa)

Task Force Chair Pam Olsen (Nebraska) reviewed the history of CoOportunity, a Consumer Operated and Oriented Plan (CO-OP) authorized under the Affordable Care Act that was placed in liquidation on February 28, 2015. She reported that the estate is down to 368 policies (from a total of approximately 110,000 in December 2014) as of July 14, 2015. All individual policies will be terminated on August 31, 2015, and policyholders have been granted a special enrollment period (SEP) by the Centers for Medicare and Medicaid Services (CMS) to find new insurance.

The task force is working with the CMS on certain open issues, and they expect reinsurance funds to be paid into the estate later this year. Claims activity is expected to continue into the first quarter of 2016.

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

Task Force Chair Janis Potter (Illinois) reported that the backlog of claims has been processed and that pharmacy claims are still being worked on. Legal Counsel Cindy Oliver (Lewis Roca Rothgerber) updated attendees on discussions between the task force and the California Conservation and Liquidation Office (CLO) regarding various issues arising from the Affordable Care Act (SeeChange is the first multi-state health insurer insolvency since the Act became law). The liquidator has received an inquiry from the Department of Justice and is working on a reply.

Task Force Chair - Janis Potter;   Staff Contact - Joanna Akiyama Universal Health Care Insurance Company, Inc. (Florida)

Task Force Chair Mike Marchman (Georgia) reported that the claims volume for this Medicare Advantage company, which was placed in and released from rehabilitation in 2007 before being ordered into liquidation in 2013, has been much lower than expected. The task force plans to complete claims adjudication and guaranty association funding, monitor any outside litigation, and seek an early access distribution.

Task Force Chair - Mike Marchman;   Staff Contact - Paul Peterson

Georgia GA Moves to New Office

The Georgia Life & Health Insurance Guaranty Association is moving to a new location. Effective August 1, 2015, the association’s address will be:

Georgia Life & Health Insurance Guaranty Association
Marchman-Steele Agency, Inc.
Gwinnett Commerce Center
3700 Crestwood Parkway, NW, Suite 400
Duluth, GA 30096

The association’s telephone numbers, e-mail addresses, and web address will all remain the same.

  Staff Contact - De Gadd

Randy Lamberjack Passes Away

Randolph D. (Randy) Lamberjack, Chief Executive Officer of Noble Consulting Services, passed away on July 29, 2015, after a long battle with cancer. He was 55.

Many of NOLHGA’s members had the opportunity to work with Randy on several important projects and noted that he was a dedicated and respected professional who always did his best in serving the interests of his clients and the receivership community. NOLHGA offers its sincerest condolences to his family and friends.

  Staff Contact - Sean McKenna