According to the state’s petition, Senior Health Insurance Co. of Pennsylvania is seeking to hike premiums 400 percent while implementing “draconian” benefit cuts. At its most extreme, some premiums may be raised as much as 675 percent.
However, the petition targets Mr. Ommen’s Pennsylvania predecessor , Jessica Altman, who was deemed by a judge the payer’s “rehabilitator,” giving her court-ordered power over its leadership team in an effort to make it solvent. The company reported a $500 million loss in 2019, and is allegedly facing a $1.2 billion deficit currently, according to the report.
The new increases are a part of Ms. Altman’s rehabilitation plan — which was approved in May 2021 — but Iowa regulators say the rate hikes violate state and federal laws.
The payer has also not issued new policies since 2003, so the move would affect 881 members in Iowa. The insurer’s members’ average age is 86 years old, and many use the policies to pay for nursing home stays.
