Citing the need to preserve remaining assets, the Kentucky Health Cooperative (KYHC) was placed in liquidation Friday at the request of the Kentucky Department of Insurance (DOI).
The order was signed this afternoon by Franklin Circuit Judge Phillip J. Shepherd.
KYHC was placed in rehabilitation on Oct. 29, and DOI began oversight of the day-to-day operations of the nonprofit health insurance company at that time.
“This is a regrettable situation, however, once we determined the degree of financial hazard, the decision to move to liquidation was an easy one,” said Kentucky Insurance Commissioner Brian Maynard. “To continue an attempt to rehabilitate the fund would increase the risk of loss, jeopardizing both creditors and policyholders.”
According to its website, Kentucky Health Cooperative, Inc. was a member-governed organization formed to make health insurance available for individuals, families and small employer groups.
“To continue an attempt to rehabilitate the fund would increase the risk of loss, jeopardizing both creditors and policyholders,” Kentucky Insurance Commissioner Brian Maynard.
Under the supervision of Franklin Circuit Court, the special deputy liquidators will begin terminating any remaining business of KYHC and will distribute the remaining assets in the order outlined in Kentucky statute.
Providers, agents and others with claims against KYHC will be notified. The deadline for filing claims will be Oct. 15.
All individual health insurance policies and most group plans terminated on Jan. 1, 2016. Any remaining KYHC policies will terminate no later than Jan. 3.
Documents will be available on the DOI and KYHC websites.
Kentucky Public Protection Cabinet
