The "Patients' Bill of Rights" makes it illegal to discriminate against a patient via his treatment plan or his insurer.
142,000 seniors with Conseco Long-Term Care Insurance have, as of mid-November, 2008, been put in a precarious situation, by putting their policies in a stand-alone trust: The Senior Health Insurance Company of Pennsylvania. The problem of escalating rate increases threatens to drive the trust to insolvency and receivership by the commissioner of insurance of Pennsylvania.
The precarious nature of the trust constitutes discrimination against the elderly recipients of care according to the federally mandated "Patients' Bill of Rights" in that it threatens the viability of the ongoing care they paid for.
***
The recent actions of Conseco Co, an Indiana based insurance holding company, appears to have seriously put in jeopardy thousands of senior long-term care policyholders (both on benefit, and premium paying.) These policies are spread throughout the states and subject to varying regulatory agendas.
The policies have been transferred from Conseco Senior Health to a trust (The Senior Health Care Company of Pennsylvania) which is no longer a part of Conseco, but a stand-alone entity solely dependent for necessary reserve capitol, on the policyholders. Milliman Actuarial Company, hired by Conseco prior to the trust's approval, (in their partially released projections,) envision a series of five rate increases to make the trust solvent. the first of the rate increases is happening much sooner than anticipated. According Martin McBirney, an insurance consultant with 20 years experience in the insurance field, these rate hikes will likely drive the average annual premium to 20,000, boding for many lapsed policies. Since the necessary reserve capitol to pay policy benefits is seriously impaired, no longer having Conseco's backing, the trust is swiftly headed for insolvency and receivership.
This jeopardizing of senior ongoing care in nursing homes, assisted living homes, questions the fairness of this deal between Conseco and the Pennsylvania insurance commissioner (Conseco is licensed in Pennsylvania for this block of LTC business.) In spite of serious misgivings concerning this trust on the part of three insurance commissioners, and their pleas to hold an open hearing to discuss this matter, they were turned down citing Pennsylvania statutes not requiring a hearing.
The trust was approved in mid November, 2008.
The Patients' Bill of Rights, mandated by the President's Advisory Commission on Consumer Protection and Quality in the Health Care Industry has been violated with the creation of a company held by a trust dependent on elderly policyholders for its financial support. It makes folly of the LTC policies they signed to guarantee peace of mind in their senior years.
Saturday, February 28, 2009
Thursday, February 26, 2009
VIEW FROM THE BOX
BY Bill Silverman
Have we ever honored our aged, given them high status in our families? Perhaps, somewhere in the past, the years before the shift in the older population to greater age and population. That's where it seemed to have occured, the culture of farming elders out to extra-family facilities, to be cared for by custodians; and, of course to loose that most precious sense of usefullness; eventually orientation to life itself.
Thus the culture of caring for seniors with profit in mind. Institutionalizing euphemized in the Nursing Home. As health care lowered to the questionable level of Health Maintenance Organizations, the fifteen-minute medical appointment, the Balance Sheet centered approvals of medical testing, so Society places the Old Ones in linoleum-sheened corridors, rooms with bed and television set, begrudged care by people who are underpaid and under incentivised to care.
This is called non-medical custodial care. I am discovering that it's no longer them, out there, but we in here! It's hard to get into peoples' minds unless you find yourself in their shoes. We are by virtue of being here, that much closer to the precipice, that unknown slide! Our days are either dull and mindless, or bingo and movies!
Moreover, we are wounded game, vulnerable to the hunter's arrow. Peering into the Custodial Care System, you may find the unexpected! the corporate board more interested in their stock valuation, than fairness to the vulnerable existent on their corporate label. Not unlike schemes hatched to physically intimidate elders by cruel landlords, quick deals from a phone bank to glad-mouth the susceptible, insurance companies dedicated to fatten profits rather than dispense manna to those in need, we allow shred attorney-banks to snake around compassion. We allow corporate Bailouts on the backs of the Weak to be crushed to their knees.
It seems more newsworthy to banner-headline the shocking nudity of a film star, than to report on blatant, and covert disenfranchisement of the Elderly.
I keep fantasizing about the congressional panel pointing fingers at Long-Term Care execs who remonstrate with innocent sincerity about how their main concern is to provide quality care. And "Why are you raising rates to astronomical heights, and denying benefits based on contrived premises?" We intend to take a careful look at that, senator! Yes, yes, and where the heck is your state regulator? Here, sir! We've not been aware of unfair practices, but we'll look into it! Bailout on the backs of policyholders? I actually see your point. We'll look into it.
Where is justice, a question as age old as the layers of civilizations unearthed by anthropologists.
Have we ever honored our aged, given them high status in our families? Perhaps, somewhere in the past, the years before the shift in the older population to greater age and population. That's where it seemed to have occured, the culture of farming elders out to extra-family facilities, to be cared for by custodians; and, of course to loose that most precious sense of usefullness; eventually orientation to life itself.
Thus the culture of caring for seniors with profit in mind. Institutionalizing euphemized in the Nursing Home. As health care lowered to the questionable level of Health Maintenance Organizations, the fifteen-minute medical appointment, the Balance Sheet centered approvals of medical testing, so Society places the Old Ones in linoleum-sheened corridors, rooms with bed and television set, begrudged care by people who are underpaid and under incentivised to care.
This is called non-medical custodial care. I am discovering that it's no longer them, out there, but we in here! It's hard to get into peoples' minds unless you find yourself in their shoes. We are by virtue of being here, that much closer to the precipice, that unknown slide! Our days are either dull and mindless, or bingo and movies!
Moreover, we are wounded game, vulnerable to the hunter's arrow. Peering into the Custodial Care System, you may find the unexpected! the corporate board more interested in their stock valuation, than fairness to the vulnerable existent on their corporate label. Not unlike schemes hatched to physically intimidate elders by cruel landlords, quick deals from a phone bank to glad-mouth the susceptible, insurance companies dedicated to fatten profits rather than dispense manna to those in need, we allow shred attorney-banks to snake around compassion. We allow corporate Bailouts on the backs of the Weak to be crushed to their knees.
It seems more newsworthy to banner-headline the shocking nudity of a film star, than to report on blatant, and covert disenfranchisement of the Elderly.
I keep fantasizing about the congressional panel pointing fingers at Long-Term Care execs who remonstrate with innocent sincerity about how their main concern is to provide quality care. And "Why are you raising rates to astronomical heights, and denying benefits based on contrived premises?" We intend to take a careful look at that, senator! Yes, yes, and where the heck is your state regulator? Here, sir! We've not been aware of unfair practices, but we'll look into it! Bailout on the backs of policyholders? I actually see your point. We'll look into it.
Where is justice, a question as age old as the layers of civilizations unearthed by anthropologists.
Sunday, February 22, 2009
THE GLORY ROAD
The old people drift about like lost lambs seeking the succor of their youth. They know full well it will never again come to them. There's Stella, and Joe who's wheelchair bound; they are both survivors of Nazi Concentration Camps. There's Mildred who was a navy test pilot during the Second World War. Mildred has difficulty locating her apartment and figuring out what she's to do when in the dining room. Most walk with walkers with painstakingly careful strides about the assisted living facility which is their home. Most wonder, in a secret place in their minds, when the ambulance will come to greet them.
These are our grandparents, delicate, unable to manage their lives without help; the very people deserving of our compassion, and gratefulness for our survival in the world.
Still, they are treated with unconscious dismissal by the insurance companies they believed would be their saviors. Marginalized carelessly, they live their lives in blyth ignorance of the dark corporate web determining their fate.
There's a host of insurance companies lacking in scruples, but one currently reins above them all. That is Conseco. Acquisitions of companies burgeoning with poorly written long-term care policies propelled Conseco to the heights of stuffed balance sheets, nine-figure salaries, two million dollar weddings, the zenith of Conseco's heyday. When the country's economy suddenly went South Conseco found themselves with LTC policies reflecting increased lifespans, increased applications for benefits, shrinkage of premiums paid, and the nose dive their stock took.
Conseco, the insurance commissioner of Pennsylvania, and a bevy of high-priced attorneys effectuated a solution: An independent trust to serve as a stand-alone, non insurance company, entity to hold and service some 142,000 LTC policies. Furthermore, the elderly policyholders were not to be given a voice in this decision, and not even to be informed of the trust's existance. It would be called, misleadingly, The Senior Health Insurance Company of Pennsylvania, sounding very much like an insurance company.
Once again in the current lexicon this misinformation about the trust's supposed balance and transparancy puts forth a cleverly constructed myth about the long-term care of the American elderly.
Will it ever come to the attention of our congressional representatives? Probably not. To quote a famous phrase: Let 'em eat cake!
Bill Silverman
These are our grandparents, delicate, unable to manage their lives without help; the very people deserving of our compassion, and gratefulness for our survival in the world.
Still, they are treated with unconscious dismissal by the insurance companies they believed would be their saviors. Marginalized carelessly, they live their lives in blyth ignorance of the dark corporate web determining their fate.
There's a host of insurance companies lacking in scruples, but one currently reins above them all. That is Conseco. Acquisitions of companies burgeoning with poorly written long-term care policies propelled Conseco to the heights of stuffed balance sheets, nine-figure salaries, two million dollar weddings, the zenith of Conseco's heyday. When the country's economy suddenly went South Conseco found themselves with LTC policies reflecting increased lifespans, increased applications for benefits, shrinkage of premiums paid, and the nose dive their stock took.
Conseco, the insurance commissioner of Pennsylvania, and a bevy of high-priced attorneys effectuated a solution: An independent trust to serve as a stand-alone, non insurance company, entity to hold and service some 142,000 LTC policies. Furthermore, the elderly policyholders were not to be given a voice in this decision, and not even to be informed of the trust's existance. It would be called, misleadingly, The Senior Health Insurance Company of Pennsylvania, sounding very much like an insurance company.
Once again in the current lexicon this misinformation about the trust's supposed balance and transparancy puts forth a cleverly constructed myth about the long-term care of the American elderly.
Will it ever come to the attention of our congressional representatives? Probably not. To quote a famous phrase: Let 'em eat cake!
Bill Silverman
Saturday, February 21, 2009
CHECK BACK TO THE BEGINNING
THE PERSON READING THIS BLOG FOR THE FIRST TIME IS ADVISED TO CHECK IN WITH THE BACKGROUND OF THIS SITUATION. AND THE SITUATION IS SPELLED OUT IN FULL IN AN ARTICLE ON THE GUERILLA ORGANIZING WEB SITE.
Friday, February 20, 2009
P.S. ROGER
Adjunct to my previous message of 2/15/09 -
Bill Silverman 02/16/09
Dear Mr. Lisi,
To follow up my previous e-mail regarding The Patient Bill of Rights:
The contract between Conseco SENIOR HEALTH and their policy holders contained no mention of the designation of a TRUST as the STEWARD of their HEALTH CARE PLAN. One might consider the validity of said contract seriously compromised.
The Pennsylvania Insurance Commissioner elected NOT hold a PUBLIC MEETING which would have afforded ALL policy holders a voice in the decision to put their CONSECO SENIOR HEALTH CARE POLICIES into a trust (Insurance Commissioners in THREE OTHER states, protecting the interests of their resident Conseco policy holders, urged the Pennsylvania Commissioner, during the comment period, to schedule a PUBLIC MEETING.)
No such meeting was scheduled.
This action has seriously put in question the validity of establishing a trust which is solely managed by five trustees with no TRANSPARENCY for policy holders who essentially were and remain OUT OF THE LOOP! (Denied a voice in the choice of a suitable HEALTH CARE PLAN, stipulated explicitly in their contract with CONSECO SENIOR HEALTH, the FORMER CONSECO POLICY HOLDERS have been consigned to rely on the decisions and capitalization of a STAND-ALONE entity not having the benefit of STATUTORY STATE REGULATIONS and the financial BACKUP of an INSURANCE COMPANY.
It is my belief that a CLASS ACTION law suit should be initiated asking the court for DAMAGES to be paid to all former CONSECO SENIOR HEALTH (domiciled in Pennsylvania) policy holders. (The attorney firm and necessary policy holder data base remain to be determined and effected.)
Bill Silverman 02/16/09
Dear Mr. Lisi,
To follow up my previous e-mail regarding The Patient Bill of Rights:
The contract between Conseco SENIOR HEALTH and their policy holders contained no mention of the designation of a TRUST as the STEWARD of their HEALTH CARE PLAN. One might consider the validity of said contract seriously compromised.
The Pennsylvania Insurance Commissioner elected NOT hold a PUBLIC MEETING which would have afforded ALL policy holders a voice in the decision to put their CONSECO SENIOR HEALTH CARE POLICIES into a trust (Insurance Commissioners in THREE OTHER states, protecting the interests of their resident Conseco policy holders, urged the Pennsylvania Commissioner, during the comment period, to schedule a PUBLIC MEETING.)
No such meeting was scheduled.
This action has seriously put in question the validity of establishing a trust which is solely managed by five trustees with no TRANSPARENCY for policy holders who essentially were and remain OUT OF THE LOOP! (Denied a voice in the choice of a suitable HEALTH CARE PLAN, stipulated explicitly in their contract with CONSECO SENIOR HEALTH, the FORMER CONSECO POLICY HOLDERS have been consigned to rely on the decisions and capitalization of a STAND-ALONE entity not having the benefit of STATUTORY STATE REGULATIONS and the financial BACKUP of an INSURANCE COMPANY.
It is my belief that a CLASS ACTION law suit should be initiated asking the court for DAMAGES to be paid to all former CONSECO SENIOR HEALTH (domiciled in Pennsylvania) policy holders. (The attorney firm and necessary policy holder data base remain to be determined and effected.)
ANOTHER LETTER TO ROGER LISI
Roger Lisi
Division of Insurance
Pennsylvania
Dear Mr. Lisi
RE: Senior Healthcare Company of Pennsylvania (independent trust created, Fall, 2008)
Historical Fact: Upon the trust's approval, granting Conseco Insurance the right to download all Pennsylvania-based Long-term care insurance policies to the trust, Commissioner Ario chose the option to not inform 142,000 policy holders across the country of the trust's existance, thereby falsely perpetuating the impression for policy holders that the insurance company they signed contracts with still held their policies.
To date, they still have not been informed.
This stands in direct violation of the U. S. Advisory Commission on Consumer Protection and Quality in the health care industry's Patient's Bill Of Rights, 1998, (see paragraph on Information Disclosure) quote: You (the patient) have the right to accurate and easily-understood information about your HEALTH PLAN, health care professionals, and HEALTH CARE FACILITIES: end quote.
The "health plan" was contracted between the patient and the insurance company (Conseco Senior Health.)
Sincerely William Silverman
Division of Insurance
Pennsylvania
Dear Mr. Lisi
RE: Senior Healthcare Company of Pennsylvania (independent trust created, Fall, 2008)
Historical Fact: Upon the trust's approval, granting Conseco Insurance the right to download all Pennsylvania-based Long-term care insurance policies to the trust, Commissioner Ario chose the option to not inform 142,000 policy holders across the country of the trust's existance, thereby falsely perpetuating the impression for policy holders that the insurance company they signed contracts with still held their policies.
To date, they still have not been informed.
This stands in direct violation of the U. S. Advisory Commission on Consumer Protection and Quality in the health care industry's Patient's Bill Of Rights, 1998, (see paragraph on Information Disclosure) quote: You (the patient) have the right to accurate and easily-understood information about your HEALTH PLAN, health care professionals, and HEALTH CARE FACILITIES: end quote.
The "health plan" was contracted between the patient and the insurance company (Conseco Senior Health.)
Sincerely William Silverman
Sunday, February 15, 2009
AN ESSAY ON ETHICS
RE: Roger Lisi
Office of the Pennsylvania Commissioner of Insurance
Thoughts on ethics (a mini essay on Commissioner Ario's decision to not ask, or inform 142,000 seniors)
It is exceedingly easy and convenient to tilt the scale in favor of convenience rather than take the high ground. A person in public office might thus be cajoled by an easy solution rather than struggle with a more ethical one.
Or perhaps the official is more easily tempted by power, the Powerful holding out a garland of roses. Of course one can never navigate the motives of another's mind, never know its true intention.
Does the exhilaration of high decision corrupt? Very decidedly so. Just look at the parade before ethics committees! And the pleas of jurisdiction, and the spread of responsibility to the thickness of a micrometer.
An official in a power position may have disturbing thoughts over having made the right decision, the more moral one. A decision that settles calmly in the gut.
A decision that throws a calculated blanket over disclosure, may be necessarily legal; but is it the right decision?
This is a measure of the distance one will go to do the right thing.
Bill Silverman
Office of the Pennsylvania Commissioner of Insurance
Thoughts on ethics (a mini essay on Commissioner Ario's decision to not ask, or inform 142,000 seniors)
It is exceedingly easy and convenient to tilt the scale in favor of convenience rather than take the high ground. A person in public office might thus be cajoled by an easy solution rather than struggle with a more ethical one.
Or perhaps the official is more easily tempted by power, the Powerful holding out a garland of roses. Of course one can never navigate the motives of another's mind, never know its true intention.
Does the exhilaration of high decision corrupt? Very decidedly so. Just look at the parade before ethics committees! And the pleas of jurisdiction, and the spread of responsibility to the thickness of a micrometer.
An official in a power position may have disturbing thoughts over having made the right decision, the more moral one. A decision that settles calmly in the gut.
A decision that throws a calculated blanket over disclosure, may be necessarily legal; but is it the right decision?
This is a measure of the distance one will go to do the right thing.
Bill Silverman
WHY WASN'T THE REPORT MADE AVAILABLE
Harrisburg Regional Manager
Pennsylvania Insurance Department
rlisi@state.pa.us
Dear Mr. Roger Lisi:
With regard to the above trust approved by Mr. Ario in October, 2008: Conseco Co., the applicant: (submission of a Form A Filing, to convert all long-term care policies domiciled in Pennsylvania to the above trust.)
Conseco's application mentioned, yet did not supply, the commissioned Milliman Actuarial Study analyzing the trust's projected capacity to survive as a stand-alone entity.
The report, when requested by Mr. Belth, editor of the Insurance Forum newsletter, during the comment period, was informed by Conseco the report was confidential. The report may reveal important projections and give insight into the rationale for creating the trust, as well as projections as to its future sustainability.
I ask you to solicit, and make this report available in the public record. If instrumental in the trust's creation, then considering the trust's impact on 142,000 senior policyholders, it would be both the right, as well as the ethical thing to do. I put forth to you, it would be easy to say this is not in your capacity to comply with this request, however, that would be remarkably reminiscent of the current protestations of non-complicity during official hearings.
I would also ask you to make available the complete database of senior policyholders so that they may be appraised of the trust holding their policies.
Very truly yours, I remain William Silverman
Pennsylvania Insurance Department
rlisi@state.pa.us
Dear Mr. Roger Lisi:
With regard to the above trust approved by Mr. Ario in October, 2008: Conseco Co., the applicant: (submission of a Form A Filing, to convert all long-term care policies domiciled in Pennsylvania to the above trust.)
Conseco's application mentioned, yet did not supply, the commissioned Milliman Actuarial Study analyzing the trust's projected capacity to survive as a stand-alone entity.
The report, when requested by Mr. Belth, editor of the Insurance Forum newsletter, during the comment period, was informed by Conseco the report was confidential. The report may reveal important projections and give insight into the rationale for creating the trust, as well as projections as to its future sustainability.
I ask you to solicit, and make this report available in the public record. If instrumental in the trust's creation, then considering the trust's impact on 142,000 senior policyholders, it would be both the right, as well as the ethical thing to do. I put forth to you, it would be easy to say this is not in your capacity to comply with this request, however, that would be remarkably reminiscent of the current protestations of non-complicity during official hearings.
I would also ask you to make available the complete database of senior policyholders so that they may be appraised of the trust holding their policies.
Very truly yours, I remain William Silverman
Friday, February 13, 2009
LET THE BUYER BEWARE!
Conseco Senior Health converted to a trust: Senior Healthcare Company of Pennsylvania
BY BILL SILVERMAN
The commissioner of insurance of Pennsylvania has chosen to disenfranchise thousands of senior citizens with a mere stroke of his official pen. He chose to be covert, to quote laws to support his decision. Thousands of senior long-term care policies were placed in an independent trust, immediately downgraded by A. M. Best, the premier insurance rating agency. The affected policyholders were not informed of the trust that held their policies.
BEST characterized the trust as a stand-alone entity with insufficient starting capital, and proposed the trust will have to impose a series of rate increases to survive. Furthermore, the trust does not have a statutory minimum capital reserve requirement, nor the necessary oversight for its operations.
Of late, business charlatans have become the topic of the day. They are regularly grilled by congressional committees for transgressions against the public trust.
Some slip through the cracks, yet violate standards of simple decency with silent efficiency.
Creation of the trust was pre-labled a balanced solution with complete transparancy. One wonders, for whom?
The truth be told, this trust conveniently relieved Conseco of a failing block of 142,000 policies; their policies, now not their policies. A simple case of silent corruption, bowing to the mighty.
And who are the true beneficiaries of this clever manipulation of law? Not really hard to imagine: The stockholders!
How does the commissioner slot into this deception?
BY BILL SILVERMAN
The commissioner of insurance of Pennsylvania has chosen to disenfranchise thousands of senior citizens with a mere stroke of his official pen. He chose to be covert, to quote laws to support his decision. Thousands of senior long-term care policies were placed in an independent trust, immediately downgraded by A. M. Best, the premier insurance rating agency. The affected policyholders were not informed of the trust that held their policies.
BEST characterized the trust as a stand-alone entity with insufficient starting capital, and proposed the trust will have to impose a series of rate increases to survive. Furthermore, the trust does not have a statutory minimum capital reserve requirement, nor the necessary oversight for its operations.
Of late, business charlatans have become the topic of the day. They are regularly grilled by congressional committees for transgressions against the public trust.
Some slip through the cracks, yet violate standards of simple decency with silent efficiency.
Creation of the trust was pre-labled a balanced solution with complete transparancy. One wonders, for whom?
The truth be told, this trust conveniently relieved Conseco of a failing block of 142,000 policies; their policies, now not their policies. A simple case of silent corruption, bowing to the mighty.
And who are the true beneficiaries of this clever manipulation of law? Not really hard to imagine: The stockholders!
How does the commissioner slot into this deception?
Tuesday, February 10, 2009
A HOOT AND A HOLLER
the letter below is from robin nolan. robin is with a public relations firm in california and works with frank darras, attorney, specializing in elder care law. he believes conseco along with the pa commissioner snaked their way around legal loopholes, the net effect, creation of this trust. apparantly the commissioner doesn't give a hoot and holler about the ultimate fate of trusting seniors. this strongly illustrates an egrigeous turn to the right, into the matrix of cheating and slimy practices that cast a foul ordor on the current american system of values. one simply has to look at the senate hearing with the securities and exchange commission re the madoff affair. oversight of the terribly obvious scheme, repleat with whistleblowers, didn't spur the commission to do anything proactive. every s.e.c. official interviewed hemmed and hawed and passed the proverbial buck, pleading innocence. frankly, i feel, the real culprit in this matter is the commissioner. the following is a direct quote from one of the respondants during the comment period the commissioner ordered. it is dated sept. 29, 08, one day before the comment period officialy ended. i quote:
"THIS SIR WILL NOT BE A TRUST BUT A TRAVISTY ON THE JUSTICE FOR AGING AMERICA WHO HAVE SAVED AND PAID FOR YEARS ON LONG TERM CARE.
"IF YOU LET THIS HAPPEN IT WILL HAPPEN TO GENWORTH AND ALL THE REST....
"DO NOT LET THIS HAPPEN TO THOSE OF US WHO HAVE LIVED THROUGH WORLD WARS, DEPRESSIONS AND INSULTS OF AGE AND ITS PLAGUES ON THE ELDERLY."
did the commissioner personally read this, and other, letters? does he have aging parents? is he like the u.s. congressmen who saw to it that their sons and daughters did not go to war, but voted for the invasion of iraq?
dear commissioner ario, i know in advance you will plead you simply had no choice; to inform would have created a big hoo-hah and might just have succeeded in stopping the creation of this trust, thereby letting conseco sink under its own greedy weight. and that would have sent a message to the ltc industry: "you good old boys might not have thought so but scruples now must be introduced into your game plans."
there is no excuse for the commissioner's less than moral decision, and for using pa law to avoid a public vetting, and informing policyholders of the existance of the trust that now holds their policies.
bill silverman
"THIS SIR WILL NOT BE A TRUST BUT A TRAVISTY ON THE JUSTICE FOR AGING AMERICA WHO HAVE SAVED AND PAID FOR YEARS ON LONG TERM CARE.
"IF YOU LET THIS HAPPEN IT WILL HAPPEN TO GENWORTH AND ALL THE REST....
"DO NOT LET THIS HAPPEN TO THOSE OF US WHO HAVE LIVED THROUGH WORLD WARS, DEPRESSIONS AND INSULTS OF AGE AND ITS PLAGUES ON THE ELDERLY."
did the commissioner personally read this, and other, letters? does he have aging parents? is he like the u.s. congressmen who saw to it that their sons and daughters did not go to war, but voted for the invasion of iraq?
dear commissioner ario, i know in advance you will plead you simply had no choice; to inform would have created a big hoo-hah and might just have succeeded in stopping the creation of this trust, thereby letting conseco sink under its own greedy weight. and that would have sent a message to the ltc industry: "you good old boys might not have thought so but scruples now must be introduced into your game plans."
there is no excuse for the commissioner's less than moral decision, and for using pa law to avoid a public vetting, and informing policyholders of the existance of the trust that now holds their policies.
bill silverman
Monday, February 9, 2009
MY STORY IN ELDERCARE LAW NEWS
MY STORY HAS BEEN PUBLISHED IN THE WEEKLY EDITION OF THE ELDERCARE NEWS. IT'S THE NAELA BULLETIN, THE PUBLICATION OF THE NATIONAL ACADEMY OF ELDER LAW ATTORNEYS. GO TO:
OR HERE IT IS:
Disaffected assisted living resident becomes LTCI guerilla
---------------------------------------
A showdown between David and Goliath is developing in the long-term care insurance industry. On one side is a large insurance company, Conseco, that last year shifted its long-term care insurance policies to a trust in Pennsylvania where it is incorporated. On the other side is Bill Silverman, a resident of an assisted living facility in Massachusetts. He has turned into a determined citizen activist in terms of demanding accountability of the insurance company, as well as state agencies involved in allowing Conseco to transfer its policy holders to an independent trust which has now assumed responsibility for long-term care insurance benefits. Bill Silverman and others are concerned that the trust is dependent on substantially increased premiums from current policy holders and an unsecured loan from Conseco. They suspect that in the current economic climate, it's only a matter of time before the trust becomes "insolvent."
The story is documented by a blog and web site based in Santa Fe, New Mexico that specializes in commenting on the growing tide of activism among the American public. http://www.guerillaorganizing.org.
Ever since the insurance trust was formed in Pennsylvania in the fall of 2008, Bill Silverman has been working with the tools he has available to get out the word: a cell phone, email account and a blog: http://www.bills2359.blogspot.com. He says that during the public comment period in Pennsylvania, there was no requirement to notify Conseco policy holders of the impending move. Silverman says he only found out about the trust arrangement "by accident" when he asked his broker about Conseco's standing in the insurance industry. Silverman believes that most of the 171,000 individuals impacted still have no idea of what's ahead. The complete story of Silverman taking on the issues brought about by Conseco can be found at: http://www.guerillaorganizing.org/article3.html.
OR HERE IT IS:
Disaffected assisted living resident becomes LTCI guerilla
---------------------------------------
A showdown between David and Goliath is developing in the long-term care insurance industry. On one side is a large insurance company, Conseco, that last year shifted its long-term care insurance policies to a trust in Pennsylvania where it is incorporated. On the other side is Bill Silverman, a resident of an assisted living facility in Massachusetts. He has turned into a determined citizen activist in terms of demanding accountability of the insurance company, as well as state agencies involved in allowing Conseco to transfer its policy holders to an independent trust which has now assumed responsibility for long-term care insurance benefits. Bill Silverman and others are concerned that the trust is dependent on substantially increased premiums from current policy holders and an unsecured loan from Conseco. They suspect that in the current economic climate, it's only a matter of time before the trust becomes "insolvent."
The story is documented by a blog and web site based in Santa Fe, New Mexico that specializes in commenting on the growing tide of activism among the American public. http://www.guerillaorganizing.org.
Ever since the insurance trust was formed in Pennsylvania in the fall of 2008, Bill Silverman has been working with the tools he has available to get out the word: a cell phone, email account and a blog: http://www.bills2359.blogspot.com. He says that during the public comment period in Pennsylvania, there was no requirement to notify Conseco policy holders of the impending move. Silverman says he only found out about the trust arrangement "by accident" when he asked his broker about Conseco's standing in the insurance industry. Silverman believes that most of the 171,000 individuals impacted still have no idea of what's ahead. The complete story of Silverman taking on the issues brought about by Conseco can be found at: http://www.guerillaorganizing.org/article3.html.
Friday, February 6, 2009
THE CONTINUING CORRESPONDENCE WITH MR. LISI
dear mr. lisi
thanks for sending me the commissioner's decision and order.
i have several questions:
the initial capitalization from conseco for senior healthcare company of Pennsylvania (175,000,000), considering the substantial funds it required in the past from conseco, seems to assure a series of future rate increases. what's your views on this?
the term "trust" is mentioned nowhere in the order; the transition seems to be stated such that it appears to be the creation of a new insurance company. can you explain this to me?
the actuarial report commissioned by conseco and its conclusions will define this transaction more completely, yet it is sequestered from public scrutiny. what may conseco have to hide in classifying this document as top secret? and, was the commissioner privy to it?
there seems to be suggestions of profit on the transferring of shares to the new trust. am i misinterpreting this?
after acceptance by the commissioner in november, notices were supposed to be sent to policyholders of the trust's existence shortly thereafter. this, apparently, was not done! why?
would this have anything to do with not allowing policyholders redress of grievances, and the hiding of critical information from those in need to know, all pertaining to first amendment guarantees?
a public meeting, prior to the commissioners decision, could have been held by virtue of questionnaires being sent, then subsequent observations by the commissioner.. in the interest of laws safeguarding consumer rights, what "real" excuse was there for not implementing this? does common law in this instance not supersede obscure pennsylvania statutes?
the trust has no statutory reserve requirements as does an insurance company. is this accurate? and if it is, what state oversight exists as to the trustees' management decisions?
i've asked this before: what procedure takes place by the state in the event of the trust's insolvency?
you've conveyed to me that the trust's cash position amounts to 300,000,000, and the trust reserves are worth 3 billion. will you kindly substantiate these claims?
the trust, from application to acceptance, took approximately 4 months. this, with no requested input from the policyholders directly affected. nor full disclosure from conseco (the actuarial study it commissioned.)
do you see this as an expedient pushing-through of this, very possibly illegal, transaction?
sincerely, william silverman
thanks for sending me the commissioner's decision and order.
i have several questions:
the initial capitalization from conseco for senior healthcare company of Pennsylvania (175,000,000), considering the substantial funds it required in the past from conseco, seems to assure a series of future rate increases. what's your views on this?
the term "trust" is mentioned nowhere in the order; the transition seems to be stated such that it appears to be the creation of a new insurance company. can you explain this to me?
the actuarial report commissioned by conseco and its conclusions will define this transaction more completely, yet it is sequestered from public scrutiny. what may conseco have to hide in classifying this document as top secret? and, was the commissioner privy to it?
there seems to be suggestions of profit on the transferring of shares to the new trust. am i misinterpreting this?
after acceptance by the commissioner in november, notices were supposed to be sent to policyholders of the trust's existence shortly thereafter. this, apparently, was not done! why?
would this have anything to do with not allowing policyholders redress of grievances, and the hiding of critical information from those in need to know, all pertaining to first amendment guarantees?
a public meeting, prior to the commissioners decision, could have been held by virtue of questionnaires being sent, then subsequent observations by the commissioner.. in the interest of laws safeguarding consumer rights, what "real" excuse was there for not implementing this? does common law in this instance not supersede obscure pennsylvania statutes?
the trust has no statutory reserve requirements as does an insurance company. is this accurate? and if it is, what state oversight exists as to the trustees' management decisions?
i've asked this before: what procedure takes place by the state in the event of the trust's insolvency?
you've conveyed to me that the trust's cash position amounts to 300,000,000, and the trust reserves are worth 3 billion. will you kindly substantiate these claims?
the trust, from application to acceptance, took approximately 4 months. this, with no requested input from the policyholders directly affected. nor full disclosure from conseco (the actuarial study it commissioned.)
do you see this as an expedient pushing-through of this, very possibly illegal, transaction?
sincerely, william silverman
Tuesday, February 3, 2009
MY ANSWER TO MR. LISI
ROGER LISI
HARRISBURG REGIONAL MANAGER
PENNSYLVANIA INSURANCE DEPARTMENT
BUREAU OF CONSUMER SERVICES
1209 STRAWBERRY SQUARE
HARRISBURG, PA 17120
rlisi@state.pa.us
fax: 717-787-8585
DEAR MR. LISI,
I AM AWARE OF THE MA. GUARANTEE FUND. IT WILL BUT PAY 1 1/2 YEARS OF MY RENT.
AND, ALTHOUGH I'M A MASSACHUSETTS RESIDENT, THE LONG TERM CARE INSURANCE CONTRACT I BOUGHT IS UNDER THE JURISDICTION OF PENNSYLVANIA AS ARE ALL OTHER LTC POLICIES NOW RESIDING IN THE SENIOR HEALTH INSURANCE COMPANY OF PENNSYLVANIA (THE TRUST).
I APPRECIATE THAT IN THE EVENT OF INSOLVENCY, I WOULD BE INFORMED. HOWEVER, MY MORE IMMEDIATE QUESTION IS: WHAT WOULD THE INSURANCE COMMISSIONER DO IN THIS EVENT? THE FACT THAT I WOULD BE INFORMED GIVES ME NO COMFORT.
I'D BE PARTICULARLY INTERESTED IN THE FOLLOWING: BEFORE THE TRANSFER, DID CONSECO MEET YOUR STATE'S STATUTORY RESERVE REQUIREMENT FOR IT'S LONG TERM CARE BUSINESS? (I'M CERTAIN THAT'S A MATTER OF PUBLIC RECORD.) DOES THE STATUTORY RESERVE REQUIREMENT APPLY TO THE INDEPENDENT TRUST?
MY FEELING IS, IF PRIOR TO THE ESTABLISHMENT OF THE TRUST, AND IN THE EVENT CONSECO'S RESERVES WERE INSUFFICIENT, THIS SHOULD HAVE BEEN ASSIGNED TO THE PENNSYLVANIA COMMONWEALTH COURT FOR THE PURPOSE OF REHABILITATION OF SAID POLICIES.
THIS WOULD BE CONSISTENT WITH THE TREATMENT OF PENN TREATY INSURANCE WHICH, LIKE CONSECO, OVERSOLD ITS LONG TERM CARE INSURANCE POLICIES AND COULD NOT MEET PENNSYLVANIA'S STATUTORY RESERVE REQUIREMENTS.
PRECISE ANSWERS TO THESE QUESTIONS ARE OF GREAT IMPORTANCE TO ME AS A POLICYHOLDER.
RESPECTFULLY, WILLIAM SILVERMAN
HARRISBURG REGIONAL MANAGER
PENNSYLVANIA INSURANCE DEPARTMENT
BUREAU OF CONSUMER SERVICES
1209 STRAWBERRY SQUARE
HARRISBURG, PA 17120
rlisi@state.pa.us
fax: 717-787-8585
DEAR MR. LISI,
I AM AWARE OF THE MA. GUARANTEE FUND. IT WILL BUT PAY 1 1/2 YEARS OF MY RENT.
AND, ALTHOUGH I'M A MASSACHUSETTS RESIDENT, THE LONG TERM CARE INSURANCE CONTRACT I BOUGHT IS UNDER THE JURISDICTION OF PENNSYLVANIA AS ARE ALL OTHER LTC POLICIES NOW RESIDING IN THE SENIOR HEALTH INSURANCE COMPANY OF PENNSYLVANIA (THE TRUST).
I APPRECIATE THAT IN THE EVENT OF INSOLVENCY, I WOULD BE INFORMED. HOWEVER, MY MORE IMMEDIATE QUESTION IS: WHAT WOULD THE INSURANCE COMMISSIONER DO IN THIS EVENT? THE FACT THAT I WOULD BE INFORMED GIVES ME NO COMFORT.
I'D BE PARTICULARLY INTERESTED IN THE FOLLOWING: BEFORE THE TRANSFER, DID CONSECO MEET YOUR STATE'S STATUTORY RESERVE REQUIREMENT FOR IT'S LONG TERM CARE BUSINESS? (I'M CERTAIN THAT'S A MATTER OF PUBLIC RECORD.) DOES THE STATUTORY RESERVE REQUIREMENT APPLY TO THE INDEPENDENT TRUST?
MY FEELING IS, IF PRIOR TO THE ESTABLISHMENT OF THE TRUST, AND IN THE EVENT CONSECO'S RESERVES WERE INSUFFICIENT, THIS SHOULD HAVE BEEN ASSIGNED TO THE PENNSYLVANIA COMMONWEALTH COURT FOR THE PURPOSE OF REHABILITATION OF SAID POLICIES.
THIS WOULD BE CONSISTENT WITH THE TREATMENT OF PENN TREATY INSURANCE WHICH, LIKE CONSECO, OVERSOLD ITS LONG TERM CARE INSURANCE POLICIES AND COULD NOT MEET PENNSYLVANIA'S STATUTORY RESERVE REQUIREMENTS.
PRECISE ANSWERS TO THESE QUESTIONS ARE OF GREAT IMPORTANCE TO ME AS A POLICYHOLDER.
RESPECTFULLY, WILLIAM SILVERMAN
THE CORRESPONDENCE CONTINUES!
Dear Mr. Silverman:
Thank you for writing to the Pennsylvania Insurance Department. Your e-mail was forwarded to the Bureau of Consumer Services for review and reply.
I will be mailing you a copy of our Department’s Decision and Order concerning this matter. The information provided in this document will answer many of your questions.
Our Department does monitor the financial condition of insurers transacting business in Pennsylvania by analyzing annual and quarterly financial statement filings and reviewing proposed financial transactions. Our Department also has examiners travel to insurance companies to review their financial condition and determine whether they are operating in compliance with Pennsylvania laws and regulations. If Senior Health Insurance Company of Pennsylvania (Formerly Conseco Senior Health) was declared insolvent, all policyholders would be informed of this event by our Department.
It appears by your mailing address you are a resident of Massachusetts. Most all states have insurance guarantee funds to provide protection to their residents if an insurance company becomes insolvent. If you are a resident of Massachusetts I recommend you contact the Commonwealth of Massachusetts, Division of Insurance at their consumer hotline: (617) 521-777 or their regular telephone number of (617) 521-7794 to receive information on the protection provided by the Massachusetts Insurance Guarantee Fund.
Roger Lisi | Harrisburg Regional Manager
Pennsylvania Insurance Department
Bureau of Consumer Services
1209 Strawberry Square | Harrisburg, PA 17120
Phone: 717.705.4395 | Fax: 717.787.8585
E-mail: rlisi@state.pa.us
www.insurance.state.pa.us | www.chipcoverspakids.com
Thank you for writing to the Pennsylvania Insurance Department. Your e-mail was forwarded to the Bureau of Consumer Services for review and reply.
I will be mailing you a copy of our Department’s Decision and Order concerning this matter. The information provided in this document will answer many of your questions.
Our Department does monitor the financial condition of insurers transacting business in Pennsylvania by analyzing annual and quarterly financial statement filings and reviewing proposed financial transactions. Our Department also has examiners travel to insurance companies to review their financial condition and determine whether they are operating in compliance with Pennsylvania laws and regulations. If Senior Health Insurance Company of Pennsylvania (Formerly Conseco Senior Health) was declared insolvent, all policyholders would be informed of this event by our Department.
It appears by your mailing address you are a resident of Massachusetts. Most all states have insurance guarantee funds to provide protection to their residents if an insurance company becomes insolvent. If you are a resident of Massachusetts I recommend you contact the Commonwealth of Massachusetts, Division of Insurance at their consumer hotline: (617) 521-777 or their regular telephone number of (617) 521-7794 to receive information on the protection provided by the Massachusetts Insurance Guarantee Fund.
Roger Lisi | Harrisburg Regional Manager
Pennsylvania Insurance Department
Bureau of Consumer Services
1209 Strawberry Square | Harrisburg, PA 17120
Phone: 717.705.4395 | Fax: 717.787.8585
E-mail: rlisi@state.pa.us
www.insurance.state.pa.us | www.chipcoverspakids.com
Monday, February 2, 2009
MY LETTER FOR TODAY!
FEBRUARY 2, 2009
ROBERT BRACKBILL
CHIEF, COMPANY LICENSING DIVISION
INSURANCE DEPARTMENT
1345 STRAWBERRY SQUARE
HARRISBURG, PA 17120
DEAR MR. BRACKBILL:
I AM A HOLDER OF A CONSECO LONG-TERM CARE INSURANCE POLICY.
I AM IN ASSISTED LIVING AND CURRENTLY ON BENEFIT.
.
WITH REGARD TO THE CURRENTLY OPERATING SENIOR HEALTH CARE TRUST OF PENNSYLVANIA, I HAVE SEVERAL QUESTIONS.
a. WHAT IS THE STATE INSURANCE DEPARTMENT'S CONTINGENCY PLAN IF THE TRUST BECOMES INSOLVENT?
b. IS THE INSURANCE DEPARTMENT MONITORING THE TRUST'S DECISIONS AND PERFORMANCE?
c. IS THERE A STATE OMBUDSMAN REPRESENTING POLICYHOLDER INTERESTS?
THESE QUESTIONS ARE IMPORTANT TO ME, AS I RECEIVE MONTHLY BENEFITS TO PAY MY RENT. I'M AWARE OF THE STATE GUARANTEE FUND, BUT IS IT SUFFICIENT TO COVER 171,000 LTC POLICIES? AND, IN THE EVENT OF INSOLVENCY, IS IT REALLY A GOOD FALLBACK POSITION?
WHY IS CONSECO ALLOWED TO WALK AWAY FROM THE LTC POLICIES IT INITIATED, WITH NO COURT REVIEW? HOW IS NOT INFORMING POLICYHOLDERS OF THE TRUST HOLDING THEIR POLICIES CONSIDERED AN ETHICAL DECISION IN SPITE OF STATE LAW NOT REQUIRING IT?
WHY WERE MY CONCERNS NOT ADDRESSED IN A PUBLIC MEETING PRIOR TO THE TRUST'S APPROVAL?
WHY WAS THE TRUST APPROVED WITHIN BARELY A MONTH'S TIME AFTER A FORMAL (FORM A) REQUEST WAS SUBMITTED BY CONSECO? WHY WAS THERE NO COURT REVIEW OF THE APPLICATION?
RESPECTFULLY AWAITING YOUR REPLY,
WILLIAM SILVERMAN
ROBERT BRACKBILL
CHIEF, COMPANY LICENSING DIVISION
INSURANCE DEPARTMENT
1345 STRAWBERRY SQUARE
HARRISBURG, PA 17120
DEAR MR. BRACKBILL:
I AM A HOLDER OF A CONSECO LONG-TERM CARE INSURANCE POLICY.
I AM IN ASSISTED LIVING AND CURRENTLY ON BENEFIT.
.
WITH REGARD TO THE CURRENTLY OPERATING SENIOR HEALTH CARE TRUST OF PENNSYLVANIA, I HAVE SEVERAL QUESTIONS.
a. WHAT IS THE STATE INSURANCE DEPARTMENT'S CONTINGENCY PLAN IF THE TRUST BECOMES INSOLVENT?
b. IS THE INSURANCE DEPARTMENT MONITORING THE TRUST'S DECISIONS AND PERFORMANCE?
c. IS THERE A STATE OMBUDSMAN REPRESENTING POLICYHOLDER INTERESTS?
THESE QUESTIONS ARE IMPORTANT TO ME, AS I RECEIVE MONTHLY BENEFITS TO PAY MY RENT. I'M AWARE OF THE STATE GUARANTEE FUND, BUT IS IT SUFFICIENT TO COVER 171,000 LTC POLICIES? AND, IN THE EVENT OF INSOLVENCY, IS IT REALLY A GOOD FALLBACK POSITION?
WHY IS CONSECO ALLOWED TO WALK AWAY FROM THE LTC POLICIES IT INITIATED, WITH NO COURT REVIEW? HOW IS NOT INFORMING POLICYHOLDERS OF THE TRUST HOLDING THEIR POLICIES CONSIDERED AN ETHICAL DECISION IN SPITE OF STATE LAW NOT REQUIRING IT?
WHY WERE MY CONCERNS NOT ADDRESSED IN A PUBLIC MEETING PRIOR TO THE TRUST'S APPROVAL?
WHY WAS THE TRUST APPROVED WITHIN BARELY A MONTH'S TIME AFTER A FORMAL (FORM A) REQUEST WAS SUBMITTED BY CONSECO? WHY WAS THERE NO COURT REVIEW OF THE APPLICATION?
RESPECTFULLY AWAITING YOUR REPLY,
WILLIAM SILVERMAN
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