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:
- Primerica Life Insurance Co.
- The National Organization of Life and HealthInsurance Guaranty Associations
- 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.
- Health insurers Anthem, Inc.; Health Care Service Corp; Horizon Healthcare Services, Inc.; and United HealthCare Insurance Company
- Policyholders Georgianna I. Parisi and James Lapinski
WASHINGTON INSURANCE RIDER 
We have a lot of money invested into this insurance. Will we lose it all? Why didn’t this come to light years ago before it got so bad? We sacrificed a lot for this insurance.
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Hi. I know you have. I will send you an email nd contact information if you wish.
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Yes, Please send me any information you have
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Your email appers invalid as you have entered it. It bounces back . What state are you in? I will send you a contact. The rehabilitation will not be final for some time. Policyholders will be offered some combination of higher premiums or fewer benefits. The NOLHGA organization has some good resources for policyholders. In the event of an insolvency, which is not now on the table, the state guarnaty associations would offer a minimum amount of coverage. https://www.nolhga.com/policyholderinfo/main.cfm/location/systemworks
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My Mother is collecting on her policy now. She’s in assisted living and paid into her policy for over 30 years. Is someone already collecting for care going to be affected? She cannot afford her facility and care without it.
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Hi, Deborah. I am not sure. Is she still paying premiums? If not, I think she should be okay, from reading the amended rehabplan but I cannot assure you of this by any means as a reporter. You can address questions, I believe, as well as comments, to Patrick H. Cantilo, Special Deputy Rehabilitator, at Senior Health Insurance Company of Pennsylvania, In Rehabilitation by email to plan.comments@shipltc.com. Here is a link to the updated plan as of May 3rd: Best of luck to her. https://630dfcef-4112-425b-a05a-db687961d4d5.usrfiles.com/ugd/630dfc_79c9fe4a74d44fa795a657a009fce967.pdf
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Thank you! No, her premium is waived now as long as her monthly claims are approved. . I appreciate this information!
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Appreciate the link above and will contact Mr. Cantilo. Basic question for quick guidance. Sister and brother-in- law have paid into policy for years. They are now 83 and 87 respectively with health conditions that would qualify for assistance. Does the rehabilitation process allow for them to initiate a claim?
Carmen Polhemus
Authorized individual on SHIP policy
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Yes, I would assume so as their policy contract has not changed until they submit to a change that is offered or are notified, etc. The rehabilitation plan has just recently been approved: https://washingtoninsurancerider.com/2021/08/26/court-approves-insolvent-ltc-insurer-ships-rehabilitation-plan/
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