The state’s Judicial Court on Wednesday appointed the Division of Insurance’s (DoI) acting commissioner Gary Anderson as the receiver of the health insurance company Minuteman Health “for the purpose of rehabilitating [Minuteman] and conserving its assets.”
Under the court order, providers are prohibited from terminating any agreements with Minuteman and must continue to provide services to the plan’s insured. DoI stressed in its statements that it will be business as usual with respect to the insurance company until DoI submits its court-mandated report and recommendations within 60 days.
DoI says that while Minuteman is currently solvent, its “level of capitalization is very thin.” The insurer has about 37,000 members, of which 74% are in Massachusetts, with the remainder in Massachusetts.
DoI also noted that executives from Minuteman are currently trying to create a new health insurance company by August 16, 2017. “If they are successful, that will afford an additional insurance option for consumers in both states,” DoI wrote.