On January 29, 2020, Senior Health Insurance Company of Pennsylvania ("SHIP") was placed in rehabilitation by the Commonwealth Court of Pennsylvania (the "Court") with the consent of SHIP’s board of directors and of the trustees of the Senior Health Care Oversight Trust, which owns SHIP. The Court appointed Pennsylvania Insurance Commissioner Jessica K. Altman (the "Commissioner") as Rehabilitator, and she has appointed Patrick H. Cantilo as Special Deputy Rehabilitator ("SDR").
Rehabilitation is a court supervised process intended to remedy the company’s financial deterioration for the benefit of policyholders and creditors.
On April 22, 2020, the Commissioner, as statutory Rehabilitator of SHIP, filed a proposed Plan of Rehabilitation ("Plan"), along with an application seeking Approval of the Plan and an application for the Approval of Form and Distribution of Notice. On June 12, 2020, the Court issued a Case Management Order establishing deadlines and procedures for Comments and a Hearing on the Proposed Plan of Rehabilitation and approved a form of notice of the filing of the application seeking Approval of the Plan. On October 21, 2020, the Commissioner, as statutory Rehabilitator of SHIP, filed a proposed Amended Rehabilitation Plan (“Amended Plan”) and on May 3, 2021, a proposed Second Amended Rehabilitation Plan (the “Second Amended Plan”) was filed.
A hearing on the Second Amended Plan was held the week of May 17, 2021 in the Commonwealth Court of Pennsylvania. That hearing has concluded. On May 24, 2021, the Court entered an Order setting deadlines for certain post-trial filings by the intervening parties who participated in the hearing. Please continue to visit the Court Documents page to obtain further updates as they arise.
Since filing the Rehabilitation Plan in April, SHIP has received, and is continuing to receive, many comments and suggestions about the Plan for SHIP’s rehabilitation. The Rehabilitation team has been continuing the analysis of the Plan and of these comments about the Plan. SHIP’s goal has been to amend the Plan to take the additional analysis and comments into account before the pre-hearing. Among the changes included in the proposed Amended Plan, filed on October 21, 2020, is a matter that will be material to certain holders of policies reinsured by SHIP.
SHIP reinsured and currently administers certain Transamerica Life Insurance Company (“Transamerica”) long-term care insurance policies. Transamerica recaptured their long-term care policies effective October 1, 2020. SHIP currently reinsures and administers certain Primerica Life Insurance Company (“Primerica”) and American Health & Life Insurance Company (“American Health & Life”) long-term care insurance policies. The proposed Rehabilitation Plan filed in April 2020 contains language that indicates that reinsured policies were going to be treated the same as policies issued by SHIP. The Commissioner and SDR have since determined that the Amended Rehabilitation Plan should provide that all reinsured policies will be excluded from the provisions of the Plan dealing with SHIP’s policies. It is possible that SHIP, or its subsidiary Fuzion Analytics, Inc., will continue administering those policies under agreements with Transamerica, Primerica, and American Health & Life, which would not have a material effect on policyholders’ rights under the policies. In addition to the expansive treatment in the first Amended Plan, the Second Amended Plan further provides clarity on the treatment of reinsured policies, and thus parties interested in the status of reinsured policies should review the Second Amended Plan as well.
The details and consequences of this change are more fully described in the Changes to the Proposed Rehabilitation Plan for Reinsured Policies section of the Other Information page.
Portions of this website (the "Website") are provided as required by Rule 3779 of the Pennsylvania Rules of Appellate Procedure and the June 12, 2020, Case Management Order of the Court in the SHIP Rehabilitation Proceeding, Docket No. 1 SHP 2020 (the "Rehabilitation Proceeding"). Absent further Order of the Court, updates to this Website shall serve as official notice of filings, orders, deadlines, and hearings.