New Orleans

Donelon: Pennsylvania insurance plan ‘disastrous’ for seniors – New Orleans, Louisiana

New Orleans, Louisiana 2021-11-30 14:55:38 –

Louisiana Insurance Commissioner Jim Donelon said he would file a lawsuit to suspend the “rehabilitation” program of an out-of-state insurance company that sold long-term care insurance to senior citizens in Louisiana.

Doneron said the plan would offer an unreasonable choice for vulnerable residents who paid their premiums. “There is the potential for a disastrous rise in rates or a decline in profits.”

Pennsylvania’s Senior Health Insurance Company (SHIP) was acquired by Pennsylvania’s insurance regulator last year after losing $ 466 million and failing to meet mandatory capital requirements.

“In that case, insurance regulators need to manage insurance companies to protect policyholders and creditors,” said the Pennsylvania Department of Insurance. Said..

Donneron said Monday that the company has a $ 1.2 billion deficit.

Pennsylvania regulators choose to rejuvenate problematic insurance companies according to state court-approved plans, rather than face liquidation where assets of closed companies are sold and claims are canceled Did.

Recently approved 195 pages suggestion For most of the 39,000 policies, the goal is to “narrow or close” the SHIP funding gap.

However, Doneron calls the plan an “insurance-friendly proposal”, raising prices by as much as 500% or significantly reducing the profits of those who need them most.

“This situation is unacceptable for Louisiana policyholders,” Doneron said. “Despite buying long-term care insurance to ensure the independence of older people and having decades of insurance protected by the State Guarantee Fund, they are now bankrupt at an average age of 86. Forced to do so, their current living conditions. “

Twenty-two other states are also opposed to plans mediated by Pennsylvania. The plan avoids the state insurance department, which once allowed SHIP to sell long-term care and home health insurance products.

Doneron said he would seek an injunction from the Louisiana State Court to prevent the rehab program from coming into effect.

“I will do my best to prevent these Louisiana consumers from changing their Guarantee Fund protection rules when needed by Pennsylvania regulators,” he said.

The Louisiana Department of Health has previously filed a proceeding in federal court seeking an injunction, but the proceeding was dismissed because the plan had not yet been approved.

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Donelon: Pennsylvania insurance plan ‘disastrous’ for seniors Source link Donelon: Pennsylvania insurance plan ‘disastrous’ for seniors

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