TakeCare stakeholders split $15M
While thousands of TakeCare subscribers won't be getting a single penny in health insurance rebates, stockholders of the company will be splitting $15.2 million.
By KUAM NewsGuam - While thousands of TakeCare subscribers won't be getting a single penny in health insurance rebates, stockholders of the company will be splitting $15.2 million. According to 2011 audited financial statements the money was paid to stockholders of the company despite unpaid claims for the year increasing to $11 million and total liabilities increasing to $19.7 million.
Under the Patient Affordability Care Act, insurance companies are required to pay rebates to subscribers if they didn't meet medical loss ratios and spend at least 85% on medical costs. Based on filings with the Department of Revenue and Taxation, SelectCare will pay $11.9 million in rebates while Staywell will have to pay $3.1 million by August 1.
TakeCare was able to avoid having to pay out the rebates by moving TakeCare under a new, limited liability company, Veiovis, which is a medical travel facilitator. Earlier this year the GMH Board of Trustees moved to terminate a direct payer agreement with the company due to concerns about TakeCare's pattern of coverage denial for hospital claims. The board eventually voted to reinstate the agreement though.
TakeCare CEO Jeff Larsen has not returned multiple calls and e-mails for comment on this story. The Department of Revenue and Taxation meanwhile has said they are looking into TakeCare's actions.