Former LGC Insurance Program To Return $17.1M In Illegal Subsidies
Former Local Government Center insurance pool Property-Liability Trust will return $17 million in illegal subsidies. This despite earlier protests that it didn’t have the money on hand. The money will go to another former LGC insurance pool--HealthTrust—and then be refunded to member communities.
For years, Property-Liability Trust struggled, and was supported by the Health Trust program, which raised funds by over-charging member communities.
Earlier this year, the state Supreme Court upheld a hearing officer’s order for the Property-Liability program to return the funds to HealthTrust. But in a move that angered state regulators, HealthTrust instead agreed to take over the property insurance program.
Today, the risk pools announced that given “favorable claims activity,” the property program can return all the subsidies to Health-Trust immediately, and once again manage itself.
In April, HealthTrust announced it would return "$13.9 million of recovered funds" from Property-Liability Trust o member communities, if state regulators approved. In today's news release, HealthTrust said that the $17.1 million to be paid by Property-Liability Trust would "supplant" the original figure.