HealthyCT Issued Order of Supervision
On July 1, 2016, Connecticut Insurance Commissioner Katharine L. Wade issued an Order of Supervision to HealthyCT. This order prevents the company from writing any new policies and from renewing any employer plans that expire after July 1, 2016. Commissioner Wade issued this Order to prevent any adverse impact on coverage, claims payments and customer service.
What is an order of supervision?
Under Connecticut law, the Connecticut Insurance Department (“CID”) has a range of steps it can take in order to protect the interests of an insurer’s policyholders and claimants. One available option when the Commissioner determines that a domestic insurer’s financial condition is deteriorating is an Order of Supervision, under which the responsibility for most day-to-day operations remains with the insurer’s management and Board, but with a number of specified actions being either prohibited outright or made subject to the Commissioner’s prior approval. The Order prevents HealthyCT from writing any new policies and also from renewing any policy that expire after July 1, 2016.
How does this affect policyholders?
Individual policyholders will continue to have full coverage through the end of 2016. These policyholders will need to find a new insurance plan for 2017 and beyond. Open enrollment runs from November 1, 2016 through January 31, 2017. It is a good idea for affected policyholders to evaluate their plan 90 days prior to your policy renewal date or as soon as renewal rates are available. You are not eligible to change your policy earlier than the open enrollment period; the Order of Supervision does not qualify members with a special enrollment period.
With the sole exception of near-term renewals (August 1 and beyond), the Order has no immediate impact. Individual policyholders with an existing HealthyCT contract will have no change whatsoever in their coverage, claims handling, customer service or other interactions with the company. Therefore, you should continue to see your doctors or other providers in the ordinary course, and continue to fill prescriptions. You must, however, also continue to pay your premiums when due in order to keep coverage in place through the expiration of your policy.
Group policyholders with renewal dates prior to July 1, 2016 will be covered for another year. Ion Insurance will work with any group with a renewal date after July 1, 2016 to find a new carrier. If you have received a quotation for new/renewal HealthyCT coverage to commence within the next several months, please note that under the Order, policies that became effective July 1, 2016 will remain in effect until June 30, 2017. However, HealthyCT cannot bind policies which were to commence August 1, 2016 or later, whether or not such coverage has already been quoted. Such quotes are no longer valid. Therefore, it is vital that if you were expecting a HealthyCT policy to commence in the near future, we will work with you to secure replacement coverage.
To learn more, give us a call today at 203.439.2815.
