Receivership order issued against failed Arizona health insurance co-op

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The Maricopa County Superior Court placed Arizona's failed health insurance co-op into receivership in an attempt to collect provider payments from the insolvent insurer, according to the Arizona Department of Insurance

The state filed suit Aug. 1, seeking to put Meritus Mutual Health Partners and Meritus Health Partners into receivership for lack of assets to pay provider claims after the insurer was suspended from doing business last year. Since shutting down in December 2015, Meritus has been unable to pay its debts.  

"Requesting the court issue an order placing any company into receivership is not an easy step for me to take," said Leslie Hess, interim director of the Arizona Department of Insurance. "Our agency's number one priority is to protect the citizens of Arizona and I believe this order is necessary to do just that."

According to the lawsuit, the state sought a liquidation order for Meritus to protect enrollees from collection activities that may be associated with unpaid provider bills.

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