The State of Florida is seeking to dissolve Physicians United Plan (PUP).
Florida is looking to dissolve the local Medicare Advantage health insurance company.
Health News Florida is reporting, The Florida Department of Financial Services filed a petition in Leon County Circuit Court to place the Orland-based plan into receivership because it is insolvent. The company’s May financial statement reported assets of $92.4 million while liabilities amounted to $105.3 million.
Florida’s commissioner of insurance regulation, “PUP’s insolvency poses a serious danger to the financial safety of the policyholders, subscribers, claimants, creditors and citizens of the state of Florida.”
Physician’s United is a Private health insurance company offering Medicare Advantage Plans to Medicare Beneficiaries in the following Florida Counties: Brevard, Broward, Hillsborough, Lake, Marion, Miami-Dade, Martin, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Seminole, Sumter, St. Lucie and Volusia.
This news is in line with a Blog / Video that I posted last year, “Is Obamacare going to destroy Medicare Advantage Plans?”. Click here to watch video:
The Affordable Healthcare Act is cutting funding to Medicare Advantage Plans, as mentioned in last years blog I wrote, “I believe that the smaller insurance companies will either be purchased by a larger insurance company, or go out of business”, Robert Bache.
PUP is an example of a Company going out of business because it ran out of money. It is reported that in April, PUP’s leaders acknowledged that the company needed $30 million in capital by June 3rd to avoid liquidation. Obviously, they were not successful in getting the capital and now that State of Florida has asked for automatic liquidation on July 1.
What does this mean to PUP Policyholders?
We are not sure, however the most likely scenario that will occur is:
Policyholders will receive a letter from CMS (Centers of Medicare Services) stating that they are losing their Plan and will have 63 days to find a new Plan. To see what Plans are available please call Senior Healthcare Direct toll free, 1-855-368-4717.
Robert W. Bache aka “MedicareBob™”
President / Producer
Senior Healthcare Direct
Direct Toll Free: 1-800-525-0299
Company Toll Free: 1-855-368-4717
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