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Life Health > Health Insurance

Louisiana Puts Small HMO In Rehabilitation

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NU Online News Service, Sept. 26, 5:10 p.m. – J. Robert Wooley, Louisiana’s acting insurance commissioner, says he has moved AmCare Health Plans of Louisiana, Baton Rouge, into rehabilitation because the company is insolvent.

AmCare is the second smallest of the eight health maintenance organizations operating in the state, according to the Louisiana Department of Insurance.

All 15,461 AmCare members will lose AmCare coverage Sept. 30, but all of them will immediately be picked up by other plans, the Louisiana department says.

UnitedHealthcare of Louisiana, Inc., a subsidiary of UnitedHealth Group Inc., Minnetonka, Minn., has agreed to cover 9,102 commercial members, and another 6,165 members have access to other coverage options.

The remaining 194 members, who have individual coverage, have a guaranteed right to apply for coverage from the Louisiana Health Plan, a pool for state residents with serious health problems.

“We are working with the LHP to contact these members to let them know what their rights are,” Wooley says in a statement.

The state district court in Baton Rouge, La., where the rehabilitation plan was filed, will take over control of the company. The next step is for the Louisiana department to tally the plan’s assets and settle its debts, Wooley says.


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