Evergreen Health Inc. has been formally ordered into the state’s receivership program after its investors backed out last month, leaving the young health insurance company financially unstable.
On Wednesday, Baltimore Circuit Judge Yolanda Tanner ordered Risk & Regulatory Consulting LLC, a professional services firm in Connecticut, to take control of Evergreen on behalf of the Maryland Insurance Administration and under supervision of the court.
The firm will be responsible for processing and paying out Evergreen members’ health claims and managing its daily operations as the state begins to wind down the company.
Maryland Insurance Commissioner Al Redmer Jr. announced July 25 he would call for the company to be put into receivership after a group of investors, which included LifeBridge Health and Anne Arundel Health System and a group of private individuals, backed out of a deal to acquire the company.
Evergreen, one of 23 nonprofit insurers created under the federal Affordable Care Act, had sought a buyer to shore up its finances.
The Baltimore-based insurer has about 25,000 members, who will continue to be covered and their claims paid — so long as they pay their monthly premium.
When their plan expires, members will not be able to renew and will instead have to choose a new insurer.
Unless a new buyer emerges, Risk & Regulatory Consulting will continue to pay out claims until all members’ plans have expired. After all claims are paid, the state would close out the rest of Evergreen’s operations.
Evergreen members can get more information online at www.evergreenmd.org or by calling 855-978-3282.