Medicare Advantage carrier Universal Health care will no longer sell Medicare Advantage plans in Georgia amid state regulators’ concerns over the company’s finances.
Universal Health Care currently has about 25,000 Georgians in its Medicare Advantage plans, which are an alternative to traditional Medicare.
State Insurance Commissioner Ralph Hudgens, who signed a consent order with the company Nov. 15, cited Universal’s net loss of $27 million in 2011 and its loss of $22.1 million in the first six months of this year as triggering his move to halt sales.
“If you extrapolate the first six months, you’re looking at $45 million in losses,’’ Hudgens told GHN on Tuesday.
Universal Health Care’s customers in Georgia do not have to switch to other insurers as a result of the consent order.
The U.S. Centers for Medicare and Medicaid Services told GHN on Tuesday that the agency also imposed an immediate suspension of enrollment for Universal in Georgia, in the wake of Hudgens’ order. That suspension remains in effect until Hudgens lifts his order, CMS said.
