On December 9, 2016, the Connecticut Superior Court, Judicial District of Hartford (the “Court”), entered an Order of Liquidation effective at 11:59 p.m. December 31, 2016 (the “Liquidation Order”) concerning HealthyCT, Inc. (“HealthyCT”). The Order of Liquidation declared HealthyCT insolvent, terminated the rehabilitation proceeding concerning HealthyCT that had been pending since November 1, 2016, and appointed Katharine L. Wade, Insurance Commissioner of the State of Connecticut, as Liquidator of HealthyCT. Under the Liquidation Order, the Liquidator is directed to take possession of all assets (wherever located) of HealthyCT and to administer those assets under the general supervision of the Court. A copy of the Liquidation Order and FAQ’s are on the websites of the Connecticut Insurance Department, www.ct.gov/cid/ and HealthyCT, www.HealthyCT.org.
The Liquidator and her Special Deputy are authorized to deal with the property, business and affairs of HealthyCT for the benefit of HealthyCT’s policyholders and creditors and to take any and all necessary actions to effectuate an orderly and timely liquidation.
Pursuant to Conn. Gen. Stat. § 38a-907 and Conn. Gen. Stat. § 38a-926(a), the Liquidation Order serves to enjoin among other things, (1) the commencement, prosecution or further prosecution of any suit, action or other proceeding against or involving HealthyCT; (2) any action taken against the property and assets of HealthyCT (including property and assets in the hands of third parties such as banks or agents) whether by legal action or otherwise; and (3) the return of any unearned premium to policyholders by agents, brokers, producers or premium finance companies. The foregoing injunctions shall apply to all persons and entities, and all actions and proceedings in any jurisdiction.
Pursuant to Conn. Gen. Stat. § 38a-907(a)(G) and (K), all health care providers are enjoined and restrained from pursuing collection against, obtaining judgments against, and/or balance billing of HealthyCT’s policyholders, insureds, or members for health care goods provided or services rendered prior to the date of the Liquidation Order; such providers shall seek payment solely from HealthyCT as HealthyCT creditor. The foregoing prohibition does not apply to any applicable copayments, deductibles, cost sharing, or fees for health care goods or services that are not covered by and remain the policyholder’s, insured’s, or member’s responsibility under this or her HealthyCT insurance policy.
NOTICE OF CLAIMS PROCEDURE AND CLAIMS BAR DATE
This notice is being sent to all individuals, partnerships, corporations, associations, estates, trusts, governmental bodies or other entities which HealthyCT’s books and records reveal may have either claims (contingent or otherwise) against HealthyCT or property or assets of HealthyCT.
Claims presented against HealthyCT will be reviewed by the Liquidator in accordance with Connecticut Gen. Stat. § 38a-945. Notices of the Liquidator’s determination on claims presented against HealthyCT will be given to claimants and/or their specified counsel. Contested claims will be resolved in accordance with Connecticut Gen. Stat. § 38a-941.
No claim, suit or other proceeding against HealthyCT or against any of its assets may be made except through the filing of a claim with the Liquidator or in a proceeding brought in the liquidation court. THE DEADLINE FOR FILING PROOFS OF CLAIM IS JULY 31, 2017
Healthcare providers SHOULD NOT use the proof of claim form. Claims for healthcare services should be presented via currently established procedures for processing in the normal course of business by July 31, 2017.
The Connecticut Life and Health Insurance Guaranty Association will be covering all eligible claims for healthcare services under the provisions of HealthyCT insurance policies, subject to guaranty association statutory limits, terms and conditions of coverage.
Claims for healthcare services should be submitted by you or your healthcare providers for processing in the normal course of business and DO NOT require the filing of a proof of claim form. Policyholders are responsible for deductible and co‐pay amounts due under their policies. The Connecticut Life and Health Insurance Guaranty Association’s aggregate coverage limit for eligible healthcare claims is $500,000 per insured. Claims that exceed the $500,000 limit or are otherwise not covered claims, will be forwarded to the Special Deputy for processing as a claim against the assets of the HealthyCT estate.
HealthyCT group insurance policies not previously terminated by January 1, 2017, shall continue in‐force for the period and under the terms as provided for by the Connecticut Life and Health Insurance Guaranty Association. Policyholders will receive notice regarding termination dates of coverage from the Connecticut Guaranty Association according to the provisions of the insurance policies and applicable law. All group policies will be terminated by the Connecticut Life and Health Insurance Guaranty Association on January 31, 2017.
Agents and Brokers
Agents and brokers DO NOT need to file a Proof of Claim for unpaid commissions UNLESS they dispute the amount owed them as reflected on the books and records of HealthyCT. Notice of the commission amount owed but unpaid will be sent to agents and brokers by the Liquidator.
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