Dear Policyholder:
I am pleased to notify you, a Conseco Senior Health Insurance Company policyholder, that Conseco Senior Health Insurance Company has changed its name to Senior Health Insurance Company of Pennsylvania (SHIP). Also, on November 12, 2008, the Pennsylvania Insurance Department approved the transfer of SHIP from Conseco, Inc. affiliates to the Senior Health Care Oversight Trust (Trust).
As a result of the transfer of SHIP to the Trust, your long term care policy will continue to be managed by SHIP. The Trust will oversee the operation of SHIP to support its mission of operating for the benefit of policyholders. As a Pennsylvania domiciled insurance company, the Pennsylvania Insurance Department will continue to be the primary regulator of SHIP. SHIP has also assigned its non-long term care business to Conseco, which will allow SHIP to concentrate exclusively on the administration of its long term care insurance policies.
What does this mean for you? With the exception of the new name, you should not notice any difference at all. The coverage that you purchased from Conseco Senior Health Insurance Company will be honored by SHIP and if you are currently receiving benefits under your policy, your eligible benefits will continue to be paid. You will make any premium payments to, and receive benefits from, the same company under its new name. The senior management team of SHIP will remain entirely intact.
One difference resulting from the transition of SHIP to the Trust is that instead of being part of an insurance holding company, SHIP’s operations will be overseen by Trustees whose primary objective is to ensure that SHIP is run exclusively for the benefit of its policyholders.
I am pleased to tell you that I will be one of those Trustees. Joining me as co-Trustees are Julie Bowler, former Insurance Commissioner for the Commonwealth of Massachusetts; Gregory Serio, former Superintendent of Insurance for the State of New York; Cecil Bykerk, a career health insurance actuary and current President of the Society of Actuaries; and John Wells. Mr. Wells is a former Conseco senior executive and head of its long term care operations. Mr. Wells will function as SHIP’s President and CEO. I am pleased to have the opportunity to serve you alongside each of these very experienced and fine individuals.
You may be wondering about the cost of your coverage. Your premiums will not increase as a direct result of the transaction. It may be, however, that your premiums will increase in the future as part of a rating plan that was put in place by Conseco Senior Health last year. SHIP is very sensitive to the issue of rate increases, however, and will continue to look for ways to minimize the need for future rate increases and, where increases are actuarially justified, will attempt to keep those increases at a minimum.
If you have any questions about SHIP, the Trust or the other information I’ve shared with you, please call SHIP at 877-449-5824, or visit SHIP's web site at www.SHIPLTC.com.
Sincerely,
C. Everett Koop, M.D., Sc.D.