On November 1, 2016, the Connecticut Superior Court entered an Order of Rehabilitation for HealthyCT, Inc. (“HealthyCT”) and, in doing so, appointed the Insurance Commissioner as Rehabilitator of HealthyCT (the “Rehabilitator”) and directed her to take control of and title to the assets of HealthyCT and to administer them under the supervision of the Court. In turn, the Rehabilitator appointed a special deputy rehabilitator to exercise all powers and responsibilities of the Rehabilitator with respect to the HealthyCT receivership. HealthyCT was formed in 2013 as a Connecticut-domiciled health insurer pursuant to the Consumer Operated and Oriented Plan (CO-OP) Program established as part of the federal Patient Protection and Affordable Care Act, P.L. 111-148 (“ACA”) and offered qualified health insurance plans to individuals and groups in Connecticut. Just prior to its rehabilitation, HealthyCT covered 30,973 insureds: 13,527 members with individual plans; 9,061 members in small groups; and 8,385 members in large groups. HealthyCT’s principal office was located in Wallingford, Connecticut.
On December 1, 2016, in the First Accounting and Status Report, the Rehabilitator informed the Superior Court that further attempts to rehabilitate HealthyCT would be futile and would substantially increase the risk of loss to creditors, policyholders or the public. Due to HealthyCT’s insolvent financial status, on December 7, 2016, the Rehabilitator submitted a petition for the entry of an order declaring HealthyCT insolvent and appointing her Liquidator of HealthyCT effective at year end when all individual insurance policies terminate by their own terms
On December 9, 2016, the Court entered an Order of Liquidation effective at 11:59 p.m. December 31, 2016, concerning HealthyCT (the “Liquidation Order”). The Liquidation Order, among other things: (i) declared HealthyCT insolvent, (ii) terminated the rehabilitation proceeding concerning HealthyCT, (iii) appointed the Insurance Commissioner as Liquidator of HealthyCT (the “Liquidator”), (iv) directed the Liquidator to take possession of all assets of HealthyCT and to administer those assets under the general supervision of the Superior Court, (v) established July 31, 2017 as the date by which any and all claims against HealthyCT not presented shall be forever barred from sharing in distributions of the assets of HealthyCT, (vi) required the Liquidator to give notice of the Liquidation Order and claims bar date to all creditors known or reasonably expected to have claims against HealthyCT, (vii) contained injunctive relief to facilitate the orderly liquidation of HealthyCT. Concurrent with the Liquidation Order, the Rehabilitator’s special deputy was appointed by the Liquidator as special deputy liquidator to exercise all powers and responsibilities of the Liquidator with respect to the HealthyCT receivership.
Set forth below is a chronology of significant events in the HealthyCT runoff and subsequent receivership, with links to further information.
Timeline of HealthyCT runoff / receivership proceedings
July 1, 2016: Order of Supervision
July 1, 2016: Press release on Order of Supervision
November 1, 2016: Order of Rehabilitation
December 1, 2016: Rehabilitator’s First Accounting and Status Report
December 7, 2016: Petition for Liquidation
December 9, 2016: Order of Liquidation
December 31, 2016: Individual insurance policies terminate by their own terms
December 31, 2016 11:59 p.m.: Effective date/time of Liquidation
January 4, 2017: Rehabilitator’s Second Accounting and Status Report
January 31, 2017: Group coverages terminated after this date.
February 17, 2017: First Accounting and Status Report of the Liquidation Proceeding
July 31, 2017: Claims Bar Date
August 30, 2017: Special Deputy Liquidator’s Report to Commissioner
August 30, 2017: Third Accounting and Status Report of the Liquidation Proceeding
October 11, 2017: Fourth Accounting and Status Report of the Liquidation Proceeding
February 2, 2018: Fifth Accounting and Status Report of the Liquidation Proceeding
April 27, 2018: Sixth Accounting and Status Report of the Liquidation Proceeding
August 9, 2018: Special Deputy Liquidator’s Report to Commissioner
August 29, 2018 : Seventh Accounting and Status Report of the Liquidation Proceeding
October 30, 2018: Eighth Accounting and Status Report of the Liquidation Proceeding
February 22, 2019: Ninth Accounting and Status Report of the Liquidation Proceeding
August 16, 2019: Special Deputy Liquidator’s Report to Commissioner
For more information:
Phone: 860-297-3900 or 800-203-3447
The HealthyCT receivership is under the general supervision of the State of Connecticut Superior Court. For more information about this receivership proceeding, select the link below: