April 13, 2001--
We reported last night the plight of Utahns who have suddenly lost their health insurance.
Now we've learned the State Insurance Department and the Federal Department of Labor are investigating the two companies which are responsible-- ELM (Employee Leasing Management) and PHN (Physicians Health NET).
Insurance Commissioner Merwin Stewart told our Carole Mikita companies like these do not have to meet state regulation requirements, which ensure adequate reserves, because they are self-funded programs.
He says many of the self-funded companies in the state operate reliably. But some don't.
Commissioner Merwin U. Stewart, State Insurance Dept.: "THEY GET MORE CLAIMS THAN ARE EXPECTED IN A GIVEN MONTH, OR IN CERTAIN TIMES, AND WITHOUT THOSE RESERVES, THEY ARE FINANCIALLY UNABLE TO MEET THEIR OBLIGATIONS."
If you're affected, call either the State Insurance Office at 538-3800,
or the Consumer Health Insurance Assistance Office at 1- 866- 350- 6242.
