The Insurance Commission has placed Caritas Health Shield, a health maintenance organization (HMO), under receivership starting August 1, following its prior conservatorship.
The IC appointed an interim receiver, prohibiting the company from collecting premiums and renewing plans during the receivership process.
The move comes after Caritas Health Shield failed to meet net worth requirements and reported significant reserve liabilities, prompting its conservatorship.
The IC has also placed Caritas Financial Plans, Inc. and Caritas Life Insurance Corp., both subsidiaries of CHSI, under conservatorship.
The company’s financial difficulties stemmed from being unable to meet the minimum net worth requirement for insurers and substantial reserve liabilities.