Family Health Hawaii ordered to liquidate immediately
The Order allows Insurance Commissioner Gordon Ito to take possession of the organization’s assets, books, records, and to assume the roles of FHH’s directors and officers. This comes after 2015 filings showed that FHH did not meet statutory solvency requirements which include maintaining minimum net worth to ensure that they are able to meet their obligations. Despite work with the state’s examination team, FHH was not able to show that they would make up the loss and regain solid standing.
While the organization does not provide individual plans, FHH currently insures approximately 420 employer group plans. All policies must be terminated by May 6, 2016 at the latest. Claims submitted after this date will be accepted or denied as a claim against FHH assets.
On Family Health’s homepage, the organization provides the following update:
Family Health Hawaii is working with the Division of Insurance to wind down the company.
All plans end May 6, 2016. Members are encouraged to find a new plan immediately.
In a statement Insurance Commissioner Gordon Ito commented on the court order:
“This is a regrettable situation. However, once we determined the degree of the existing financial hazard, the decision was made to protect the policyholders and creditors…Falling below statutory solvency requirements compelled this liquidation action. Further delay would only increase the risk of loss and jeopardize FHH’s policyholders’ access to healthcare and providers under their plans.”