NU Online News Service, April 21, 2004, 6:27 p.m. EDT – Florida insurance regulators are helping a unit of Conseco Inc., Carmel, Ind., restructure its block of Florida home health care policies.[@@]
Conseco says 18,653 holders of Florida home health care policies have been responsible for more than $337 million in losses at its Conseco Senior Health Insurance Company Inc. subsidiary since 1988.
The losses amount to an average of about $18,000 per Florida home health care policyholder.
Kevin McCarty, director of the Florida Office of Insurance Regulation, has rejected a proposal that Conseco Senior Health cope with the losses by increasing premiums for all Florida home health care policyholders 211.6%.
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Instead, McCarty has asked Conseco Senior Health to give all home health care policyholders throughout the United States 3 choices:
- Policyholders who want to stop paying any premiums will get a contingent benefit equal to 100% of the sum of all premiums paid.
- Policyholders who want to keep their existing benefits could pay a rate increase of as much as 50% for the first year after Conseco Senior Health restructures the block. McCarty’s order would not impose a cap on future rate increases, but Conseco Senior Health would have to provide actuarial justification for any increases.