FOR IMMEDIATE RELEASE:
7/27/2017
FOR INFORMATION, CONTACT:
Joseph Sviatko, 410-468-2458

Maryland Insurance Administration Issues Administrative Order Regarding Financial Health of Evergreen Health

Commissioner Redmer Moves to Protect 25,000 Maryland Consumers

BALTIMORE — Maryland Insurance Commissioner Al Redmer, Jr. has issued an Administrative Order prohibiting Evergreen Health from making any disbursement, payment or transfer of assets without prior approval of the Commissioner. Evergreen Health is prohibited from selling or renewing any insurance policies. These actions are in response to Evergreen’s financial position and after private investors informed the Insurance Administration that they were terminating the process of acquiring Evergreen Health on July 24, 2017.
 
This Administrative Order is a preliminary step to an anticipated receivership.
 
The Insurance Administration has met monthly with the company over the last year to monitor its financial solvency and to find a workable solution and a way for Evergreen Health to move forward.  
 
In an effort to remain in the insurance marketplace, Evergreen Health formally applied for conversion from a nonprofit entity to a for-profit entity in connection with the acquisition of Evergreen by the investors in May 2017. Prospective investors included JARS Health Investments, LLC, Anne Arundel Health System, Inc., and LBH Evergreen Holdings, LLC. The Commissioner approved the transaction, which would have infused critical capital necessary to the company’s survival, on June 14, 2017.
 
“The Maryland Insurance Administration took all possible steps to keep Evergreen in the market. Unfortunately, the company’s financially hazardous condition and the failure of the acquisition to close necessitated regulatory action on our part,” Insurance Commissioner Al Redmer, Jr. said. “Issuing this order is a difficult decision that had to be made in order to protect Evergreen consumers.”
 
Evergreen currently provides health insurance to approximately 25,000 Maryland residents.
 
What this means for policyholders:
 
This Administrative Order means that Evergreen will not be listed on the Maryland Health Benefit Exchange for the Open Enrollment period that starts November 1, 2017. Policyholders should continue to pay their premiums to ensure coverage.
 
  • Contact Information for Evergreen Health:
    Evergreen policyholders may also obtain information online at https://www.evergreenmd.org  or Member Services at 855-978-3282.
About the Maryland Insurance Administration

The Maryland Insurance Administration is an independent State agency charged with regulating Maryland’s $28.5 billion insurance industry. For more information about the Insurance Administration, please visit www.insurance.maryland.gov or follow us on Facebook at www.facebook.com/MDInsuranceAdmin or Twitter at @MD_Insurance.

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