Forida Heps Conseco Restructure Home Care Bock
By Aison Be
Forida insurance reguators are heping a unit of Conseco Inc., Carme, Ind., restructure its bock of Forida home heath care poicies.
Conseco says 18,653 hoders of Forida home heath care poicies have been responsibe for more than $337 miion in osses at its Conseco Senior Heath Insurance Company Inc. subsidiary since 1988.
The osses amount to an average of about $18,000 per Forida home heath care poicyhoder.
Kevin McCarty, director of the Forida Office of Insurance Reguation, has denied Conseco Senior Heaths requests to cance the Forida home heath care poicies or impose a 211.6% rate increase on the poicies.
Instead, McCarty has asked Conseco Senior Heath to give a home heath care poicyhoders throughout the United States 3 choices:
- Poicyhoders who stop paying premiums wi get a contingent nonforfeiture benefit equa to 100% of the sum of a premiums paid.
- Poicyhoders who keep their existing benefits coud end up facing a rate increase of as much as 50% for the first year after Conseco Senior Heath restructures the bock. McCartys order woud not impose a cap on future rate increases, but Conseco Senior Heath woud have to provide actuaria justification for the future rate increases.
- Poicyhoders who are wiing to accept a stricter repacement poicy wi be rewarded with permanent imits on poicy rate increases.