$2.7 Million to La. Universities after AmCare Dissolution
Louisiana Insurance Commissioner Jim Donelon announced today a favorable court order on the dissolution of health maintenance organization AmCare Health Plans of Louisiana, Inc.
The court order awards more than $2.7 million to be paid to six Louisiana universities in equal amounts of approximately $460,000. The six universities are Louisiana State University-Shreveport, Southern University and A&M College, University of Louisiana-Lafayette, University of Louisiana-Monroe, University of New Orleans and Xavier University.
“The dissolution of a company is never a pleasant thing but I am glad to report that this ending is going to have a beneficial outcome,” Commissioner Donelon said. “We have been able to pay those to whom money was owed, and we are investing the remaining funds in our next generation through educational insurance and business programs at these institutions.”
AmCare was ordered into liquidation, and in 2011 the Louisiana Supreme Court issued an opinion in favor of the Louisiana Commissioner of Insurance allowing providers and policyholders of AmCare to receive their payments. Since that time, the Louisiana Department of Insurance and Receiver Marlon Harrison have worked to ensure that policyholders, providers, and creditors were paid the principal and interest to which they were entitled.
The Louisiana Department of Insurance, as well as Texas and Oklahoma regulators, filed suit against the parent company of AmCare, Health Net Inc., over breach of contract and other torts. When the Louisiana Supreme Court ruled in their favor in 2011, each state was awarded compensatory and punitive damages.
The law allows for the Commissioner of Insurance to disburse the funds according to a plan approved by the court. In addition to receiving the surplus funds, the universities may seek matching funds from the Kevin P. Reilly Sr. Louisiana Education Quality Trust Fund (LEQTF) established in the state constitution.