Dec 5, 2016

HealthyCT Inc. heading toward liquidation

As rehabilitator of the health co-op, HealthyCT Inc., Connecticut Insurance Department Insurance Commissioner Katherine L. Wade has determined the efforts to rehabilitate the company have been unsuccessful. A petition for liquidation—with a requested liquidation date effective Dec. 31, 2016, at 11:59 p.m.—is expected to be filed in early December.

This means HealthyCT group insurance coverage is expected to end Jan. 31, 2017. It is important for employers to enroll in other health insurance immediately to afford their employees continuous health insurance coverage. It is anticipated claims for health-care services will continue to be paid by HealthyCT until Dec. 31, 2016, and once the liquidation order is effective, the Connecticut Life and Health Insurance Guaranty Association will fund eligible health-care claims.

For HealthyCT group coverage that is not replaced by Jan. 1, 2017, the CLHIGA will continue group coverage for the month of Jan. 2017 under the terms of a HealthyCT policy. However, employers must pay the group’s January premium for coverage to stay in force. Therefore, it is important employers with group coverage with HealthyCT find alternative coverage to avoid a gap in coverage since coverage will not be available after Jan. 31, 2017.

The CLHIGA pays for medical and pharmacy claims with a limit of $500,000 per member, but the limit does not include the members cost. 

HealthyCT stopped paying commissions when the rehabilitation order was entered Nov. 1, 2016. Brokers and agents can make a claim against HealthyCT’s liquidation for commissions owed from October to December 2016. Payment of insureds’ claims receive priority, with the payment of unpaid commissions depending on assets available in HealthyCT’s liquidation estate.

PIACT will continue to monitor this situation and keep members apprised of any new developments as this issue unfolds.