Monday, November 24, 2014

Blast from the Past

I first became a fan of Medical Savings Accounts (since evolved to Health Savings Accounts) way back in 1992, when they were first introduced by Golden Rule Insurance. GR's president at the time, Pat Rooney (whose family, if I recall correctly, founded the company), eventually left to found another carrier, Medical Savings Insurance Company (MSIC), which marketed MSA's exclusively.

In 2008, MSIC went into receivership to protect its over 6,000 policyholders. Having fallen on hard times, the company faced substantial financial hurdles. On the bright side (and in a bit of irony), policyholders were transferred to Golden Rule.

Reason I bring this up is that I had written a couple cases with MSIC back in the day, and over the weekend I received a "Notice of Hearing" for final liquidation of the firm's assets.

Or not:

"[T]he Liquidator reports that all assets and/or property ... have now been recovered ... does not have sufficent assets ... no MSIC assets are available for payment."

Shorter: if you think MSIC owed you anything, don't count on it.

The better, more positive lesson for me, though, is that this doesn't affect policyholders: the system worked, and they weren't left holding the bag.

Well, at least not by the Indiana Department of Insurance.
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