Monday, November 10, 2008

TDI Approves Shannon's Shuttering of Legacy

On October 29, 2008 the Texas Department of Insurance approved the closing of Legacy Health Plans and Legacy Health Solutions, their HMO subsidiary. The health insurer will close eight years after getting initial approval from the same regulatory body.

What will happen to LHP's nearly $5.5 million in net surplus, as reported on the TDI website? Add LHS's $2.2 million for a total potential roll up of $7.7 million. That could be considerably less given the quarterly results for 2008.

The HMO division lost $166,000 on an underwriting basis in the first quarter. That grew in the second quarter to a negative $316,000.

Hopefully, assets will be left at the end of Legacy Health's deconstruction. Given Bush's latest Medicaid cut for outpatient services, Shannon could use any excess Legacy funds. The Bush health care blanket party continues.

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