The Arkansas Insurance Department will be taking control of an Arkansas-based Medicare pharmacy benefits insurer following an order of rehabilitation issued by a Pulaski County circuit court judge.
Indy Health Insurance Company, Inc. (IHIC), a Medicare Part D pharmacy benefits insurer, was placed under the order of rehabilitation after Arkansas Insurance Commissioner Alan McClain filed to place the company under receivership on Tuesday, March 16. According to a state release, IHIC experienced “significant unfavorable claims development” in the first quarter of 2021 and was unable to develop a plan to address these “unexpected losses.”
IHIC’s board of directors agreed to the order of rehabilitation.
Under the receivership, state regulators will be working to ensure that customers obtain a new Medicare Part D plan and that outstanding claims are settled. McClain, who was appointed as the company’s receiver, and deputy receiver Steve Uhrynowycz will be determining the company’s direction forward to a new plan and new prescription drug plan.
Indy Health Insurance Company launched its Medicare-D plan in Arkansas in 2020, with a press release issued on March 9, 2020 announcing the launch of the Medicare-D for the fall. According to its corporate website, Indy Health Insurance Company was founded by independent pharmacy owners looking to impact the costs of prescription drugs. In its news release, IHIC stated that pharmacies partnered with them would be “able to create their own formulary, medication therapy management services and to negotiate their own rebates through an independently owned, sustainable entity that provides them with equitable representation within the prescription drug system.”
IHIC also provides Medicare Part D plans in Pennsylvania, West Virginia, Illinois and Georgia.