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Michigan Eyes Health Termination Notices

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Michigan insurance regulators are asking an insurer to take a different approach to dropping a health insurance product line that the insurer has been selling there.

The Michigan Office of Financial and Insurance Regulation has sent a cease-and-desist notice to Guarantee Trust Life Insurance Company, Glenview, Ill.

Guarantee Trust has been selling both traditional and high-deductible health insurance to individuals in Michigan, and it has been trying to stop selling the traditional products and continue to sell the high-deductible coverage there, officials say.

Guarantee Trust sent coverage termination notices to the holders of the traditional coverage.

Michigan requires individual health insurers to sell coverage on a guaranteed renewable basis. It lets insurers terminate coverage if they no longer offer a particular type of coverage in a market, but, under Michigan market rules, the high-deductible coverage Guarantee Trust is still selling is the same type of coverage that the company is dropping, officials say.

Guarantee Trust is still waiting to receive a copy of the cease-and-desist notice and is not yet ready to comment on the order, a representative says.