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Insurance Dispute Settled

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By DAVID GULLIVER, Sarasota Herald-Tribune

Published: December 23, 2007

Updated: 12/22/2007 10:33 pm

ST. PETERSBURG - Florida insurance regulators' long-running battle with St. Petersburg-based insurer Universal Health Care has ended with the company agreeing to pay $450,000 in fines and reimbursements to the state and follow more stringent financial reporting rules.

It may clear a path for the company to resume selling its popular but controversial "Any, Any, Any" Medicare Advantage plan, which state regulators had blocked because sales had far outstripped the company's safety reserves.

It appears to end a dispute that began in February when regulators first found the reserve shortfall and later moved to take over and sell off the company - prompting Universal to file a slew of motions in state and federal court to stave off liquidation.

Universal's best chance, a federal case saying the state had no authority over Medicare plans, died two weeks ago when a federal judge threw out the case.

That led to consent agreements announced late Friday after Insurance Commissioner Kevin McCarty signed off on the deals with two Universal subsidiaries.

In the first, Universal's private fee-for-service plan - known as the "Any, Any, Any" plan - admitted that it had violated financial reporting rules and that it had failed to meet reserve requirements.

It agreed to pay a $100,000 fine and $250,000 in state costs and dismiss all court cases and appeals.

The "Any" plan proved wildly popular with consumers, promising them access to any doctor, any time, anywhere. Many doctors did not accept the plan, however.

Universal forecast selling about $56 million in premiums in the seven states where it offered the plan. Instead, it sold $816 million in premiums, state officials said, leaving it far short of reserve requirements.

In the agreement, the company agreed to bring its reserves to $116 million within 15 days, or find a reinsurer to take on some or all of Universal's premiums.

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