After eight years of legal struggle among state regulators, investors and policyholders, Commonwealth Court Judge Hannah Leavitt on Wednesday signed off on a plan to liquidate Penn Treaty Network America Insurance Co. and its affiliate American Network Insurance Co. of Allentown.
That decision leaves solvent insurers, their owners and customers to pick up the cost for more than 70 percent of the $4.6 billion in longterm-care claims expected for 76,000 aging Penn Treaty customers. Independence Blue Cross and other health insurers will have to fund an annual premium surcharge of up to 2% a year, with costs ultimately borne by higher policy prices or by company owners. (Updated)
“Our projection is the guaranty funds will cover $3.3 b…
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