SHIP’s amended rehabilitation plan gets some set-sail dates

Feb. 6, 2021 — Senior Health Insurance Company of Pennsylvania or SHIP is on track for a potential rehabilitation in the third-quarter of 2021 with a hearing scheduled for April 26.

That’s according to new filings in the case and sources involved wit hthe ongoing case of the beleaguered long-term care insurance company with a funding gap of $1 billion it must try and shore up.

However, the few state regulator intervenors are not getting all they hoped for.

The Commonwealth Court of Pennsylvania submitted a case management order Jan. 29, a year to the day after it first entered the initial rehabilitation plan. This plan was amended and resubmitted to the court Oct. 21, 2020.

The hearing will “continue as necessary thereafter, as to whether the proposed rehabilitation plan should be approved, modified and approved, or disapproved,” said Judge Mary Hannah Leavitt in the filing.

The judge imposed a March 22 deadline for any intervening party to respond to the pre-hearing memorandum and any other intervenors’ statements or documents, due March 8.

Leavitt also denied the request by state insurance regulators in Maine, Massachusetts and Washington State to have access to certain exhibits and witness testimony in a Jan. 29 order. The state regulators wanted more detailed information on rate and benefit calculations in the amended rehabilitation plan than the rehabilitation team wanted to share.

The complex and lengthy rehabilitation plan is designed to take help decrease that gap with its assortment of options, various combination of cuts in benefits and increases in premiums for now-elderly policyholders. But the three state insurance regulators have argued that the SHIP rehabilitation plan is crafted “on the backs of current policyholders” with anticipated dramatic and costly changes to their expected course of extensive elderly care.

In addition to the state regulators, intervenors with their own purposes, as listed in the second case management order, include:

  1. Primerica Life Insurance Co.
  2. The National Organization of Life and HealthInsurance Guaranty Associations
  3. Agents and Brokers ACSIA Long Term Care, Inc., Global Commission Funding LLC, LifeCare Health Insurance Plans, Inc., Senior Commission Funding LLC, Senior Health Care Insurance Services, Ltd., LLP, and United Insurance Group Agency, Inc.
  4. Health insurers Anthem, Inc.; Health Care Service Corp; Horizon Healthcare Services, Inc.; and United HealthCare Insurance Company
  5. Policyholders Georgianna I. Parisi and James Lapinski

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