— Posted in News
Maryland prohibits Evergreen Health from selling insurance policies
Maryland Insurance Commissioner Al Redmer, Jr. has stamped an order which prohibits Evergreen Health from making any disbursement, payment or transfer of assets without prior consent of the Commissioner.
Evergreen Health is prohibited from selling or renewing any insurance policies. These actions are in response to Evergreen’s financial position and after private investors informed the Insurance Administration that they were terminating the process of acquiring Evergreen Health on July 24, 2017. This Administrative Order is a preliminary step to an anticipated receivership.
The Insurance Administration has met monthly with the company over the last year to monitor its financial solvency and to find a workable solution and a way for Evergreen Health to move forward. In an effort to remain in the insurance marketplace, Evergreen Health formally applied for conversion from a nonprofit entity to a for-profit entity in connection with the acquisition of Evergreen by the investors in May 2017.
Prospective investors included JARS Health Investments, LLC, Anne Arundel Health System, Inc., and LBH Evergreen Holdings, LLC. The Commissioner approved the transaction, which would have infused critical capital necessary to the company’s survival, on June 14, 2017.
“The Maryland Insurance Administration took all possible steps to keep Evergreen in the market. Unfortunately, the company’s financially hazardous condition and the failure of the acquisition to close necessitated regulatory action on our part,” Insurance Commissioner Al Redmer, Jr. said. “Issuing this order is a difficult decision that had to be made in order to protect Evergreen consumers.” Evergreen currently provides health insurance to approximately 25,000 Maryland residents.
Source: Company Press Release