Insurance Commissioner Gordon Ito today announced that Family Health Hawaii, MBS (“FHH”), was ordered into liquidation. The order was signed by State First Circuit Court Judge Karen T. Nakasone.
The order authorizes Commissioner Ito to take possession and control of FHH’s assets as the Liquidator and assume the powers of the company’s directors and officers for the protection of policyholders, creditors, and the public. The Order of Liquidation is effective immediately.
Health insurance companies in Hawaii are required to meet statutory solvency requirements which include maintaining minimum net worth to ensure that they are able to meet their obligations. FHH’s 2015 annual filings revealed that the company is below the minimum level required by law with no prospects of making up the deficit. FHH had been working with the State’s examination team prior to the 2015 annual filing but had missed several key deadlines.
“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,” said Commissioner Ito. “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.”
The Insurance Division is working to ensure that all employer groups are notified and transitioned off of FHH group plans in an expeditious fashion. Employer groups should contact their insurance broker or account management for assistance with the transition of coverage to a new insurer. For more information and assistance, employer groups and healthcare providers can call (855) 206-3277.
Employer groups can also contact HMSA, Kaiser, UHA and HMAA. These insurers are committed in assisting these groups in this difficult time. Contact numbers for these insurers are:
HMSA (808) 948-5555
KAISER (808) 432-5237
UHA (808) 532-4009 Toll Free (800) 458-4600, Ext. 301
HMAA (808) 591-0088 Toll Free (800) 621-6998
Family Health Hawaii currently insures approximately 420 employer group plans, and does not provide individual plans.
More information will be provided by the Insurance Division on the claims process throughout the liquidation proceedings. For any other questions, please call (844) 717-7334 or visit www.familyhealthhawaii.com for FAQs. Hawaii consumers can call Hawaii Insurance Division’s Health Branch at (808) 586-2804 or visit www.cca.hawaii.gov/ins/ for FAQs.
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