February 6, 2017

Commissioner Donelon Announces Decision Granting Louisiana Universities more than $2.7 Million

Louisiana Insurance Commissioner Jim Donelon announced today a favorable court order on the dissolution of health maintenance organization AmCare Health Plans of Louisiana, Inc. (AmCare) which paves the way for more than $2.7 million to be paid to six Louisiana higher educational institutions. The six universities receiving funds in equal amounts of approximately $460,000 are Louisiana State University-Shreveport, Southern University and A&M College, University of Louisiana-Lafayette, University of Louisiana-Monroe, University of New Orleans and Xavier University.

“The dissolution of a company is never a pleasant thing but I am glad to report that this ending  is going to have a beneficial outcome,” said Commissioner Donelon. “We have been able to pay those to whom money was owed and we are investing the remaining funds in our next generation through educational insurance and business programs at these institutions.”

AmCare was ordered into liquidation and in 2011 the Louisiana Supreme Court issued an opinion in favor of the Louisiana Commissioner of Insurance allowing providers and policyholders of AmCare to receive their payments. Since that time, the Louisiana Department of Insurance and Receiver Marlon Harrison have worked to ensure that policyholders, providers and creditors were paid the principal and interest to which they were entitled.

The Louisiana Department of Insurance, as well as Texas and Oklahoma regulators, filed suit against the parent company of AmCare, Health Net Inc., over breach of contract and other torts. When the Louisiana Supreme Court ruled in their favor in 2011, each state was awarded compensatory and punitive damages. The law allows for the Commissioner of Insurance to disburse the funds according to a plan approved by the court. To view the 19th Judicial District Court Order approving the dissolution and distribution plan, please click here. In addition to receiving the surplus funds, the universities may seek matching funds from the Kevin P. Reilly Sr. Louisiana Education Quality Trust Fund (LEQTF) established in the state constitution.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting