Insurance Bankruptcy

[Alan328]

From the state of Georgia.

My retired father's health insurance carrier filed bankruptcy last year. At the time of the bankruptcy
settlement, there were several claims that had been
accepted as valid but not paid. Now the service provider
is attempting to collect the balance which was not covered
in the bankruptcy settlement and a large amount of accrued
interest from my father. Which give me two question. Is he liable for payment of the balance which should have been
discharge at the insurance companies bankruptcy. And if he is, does he have recourse against the insurance carrier even though they have gone through bankruptcy. The policy was current and in effect at the time of the bankruptcy.

 

[ALawyer]

This is FAR more complicated than it seems because there are many different types of health plans and many different types of arrangements that health "insurers" have with policyholders and providing doctors and hospitals.

IF it was a true insurance company there probably is a state life and health insurance guaranty fund that should pay the claims, eventually. Ask your state insurance department (and every state has such a fund although there are differences from state to state).

If the plan provided, or in his paperwork with the doctor, your father agreed, that he would be liable to pay (even though they might bill the carrier) and the insurer or plan would reimburse him, then he would have to pay the doctor and stand in line to collect from the assets of the insurance company in "liquidation" or "rehabilitation".