December 2, 2016

Wade seeks to liquidate HealthyCT

A month after placing nonprofit health insurer HealthyCT under a rehabilitation order, the state's insurance commissioner has notified a judge that she intends to file a petition seeking to liquidate the Wallingford-based company by Dec. 31.

Insurance Commissioner Katharine Wade's Dec. 1 notice said that she has determined that further attempts to rehabilitate HealthyCT "would be futile and would substantially increase the risk of loss to creditors, policyholders or the public."

HealthyCT lost $45 million in the first nine months of this year, and its cash on hand has fallen from $92 million in January to $26 million as of Nov. 30. That figure is expected to shrink to $10 million by year's end, Wade wrote.

The company has let go 34 employees since July and had 41 remaining as of Nov. 1. It is expected to have 24 left by the end of the year, as some group policies will leak into the new year.

Wade's filing said HealthyCT CEO Ken Lalime is expected to leave the company on Dec. 15

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