About 49,000 policyholders who will lose insurance coverage cannot apply their previous deductible or out-of-pocket balances to new plans. However, the insurance department will allow those members to file claims seeking cash recuperations from Land of Lincoln’s estate, according to the article.
The following four parties are eligible to recover funds from the failed insurer, in descending priority: the Illinois Department of Insurance, creditors and lenders, employees and policyholders.
State insurance regulators made moves to shutter the insurance co-op after they determined $31.8 million Land of Lincoln owed in risk-adjustment fees made future operations unfeasible.
More articles on payer issues:
One-tenth of Kansas residents lacked health insurance: 6 statistics
Maine health insurance co-op to exit New Hampshire market
Aetna, Piedmont Healthcare ink 2.5-year contract
