An Arkansas-based pharmacy benefits insurer has been placed into rehabilitation, the Arkansas Insurance Department reported.
Indy Health Insurance Company Inc. (IHIC) is an Arkansas domiciled company that provides Medicare Part D plans in Arkansas, Pennsylvania, West Virginia, Illinois, and Georgia, the AID said.
Arkansas Insurance Commissioner Alan McClain filed a petition for the appointment of a receiver for rehabilitation on March 16.
After experiencing significant unfavorable claims development during the first quarter of 2021, IHIC was unable to provide regulators with a viable plan to address the unexpected losses. Following a review and consideration of all available options, IHIC’s board of directors adopted a resolution voluntarily consenting to the entry of an order of rehabilitation.
The immediate focus for regulators has now shifted to ensuring IHIC’s Medicare Part D beneficiaries obtain a new plan and that all outstanding claims are settled.
Plan members in the impacted states will receive notification from the Centers for Medicare and Medicaid Services (CMS) in the coming days with information on the process for signing up for another Part D plan in their area.
As the appointed receiver, McClain and his appointed deputy receiver, Steve Uhrynowycz, will be working with company management, CMS, and the court to determine the most efficient means for continuing Plan D Medicare services to the enrollees under the company’s plan.
Source: Arkansas Insurance Department (AID)
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