The Utah Insurance Commission distributed 52.4 percent of qualified claims of health care providers and subscribers in the liquidation of Maxicare Utah Inc.
Harold C. Yancey, state insurance commissioner, said the payment was made last month with the approval of the Third District Court. He praised the way Utah health organizations worked together.Yancey said all of the health maintenance organizations in the state committed to offer Maxicare subscribers coverage in 1988 when the company was ordered to liquidate. That helped cushion the impact on the 20,000 Utah Maxicare subscribers.
Yancey said nationally many health care providers are strained. "If any component of the health care system breaks down, such as an insurance carrier, the impact can have far-reaching consequences."
After the announcement, Intermountain Health Care agreed not to pursue claims outside the liquidation proceeding against Maxicare subscribers. "This was a substantial and significant forbearance by IHC." Another large contributor was Utah Life and Disability Insurance Guaranty Association.
Of the 32 largest health care provider claimants in the Maxicare liquidation, with IHC as the largest, all settled with the liquidator and agreed to accept the 52.4 percent distribution as payment in full. "This means that each of these health care providers forgave substantial balances on their bills to Maxicare and their subscribers," Yancy said.