“Penn Treaty and its affiliates are so broke that their unpaid obligations for Pennsylvania are expected to top $500 million, “close to or at the 2 percent cap” for annual surcharges on Pennsylvania health-insurance policy premiums“
So says Sean McKenna, spokesctitter for the national life and health guaranty group [ed: basically FDIC for insurance]. And what does this mean?
“[Pennsylvania] braces for largest health insurance failure in U.S. history“
Sounds ominous, no?
We first wrote of PT’s woes almost exactly 7 years ago, when this whole mess began to unravel for them. This news, though, is much bigger: some $4 billion in the hole, perhaps things would have “passed quietly to reinsurance – a sort of insurer underworld of risk-swapping – if Penn Treaty had been liquidated when it was first taken over.”
Oh well, hindsight’s always 20/20, right?