The Supreme Judicial Court in Massachusetts ordered the rehabilitation and conservation of assets of Minuteman Health Inc. and named state Acting Commissioner of Insurance Gary Anderson receiver.
The order came more than a month after the company announced that it intends to launch a new health insurer in response to the negative impact of the Affordable Care Act-imposed risk adjustment program. In 2016, the company sued the federal government over $5.5 million of unpaid risk corridor payments.
The court gave Anderson 60 days to submit a report and recommendation relating to the company's operations and prohibited the company from conducting business unless Anderson allows it.
Since its June announcement that it will not sell insurance in 2018, Minuteman Health's financial condition has worsened and its surplus has reached a level that pushed the Massachusetts Division of Insurance to assume control of the company, according to the New Hampshire Insurance Department. The company insures about 27,000 individual members and three dozen small group members in New Hampshire.
The rehabilitation is not expected to lead to material changes to Minuteman Health policyholders' experience through Dec. 31.