Darren Larson, organizer of Hawaii HealthCare Alliance, has agreed to revocation of his insurance license and to pay a $50,000 fine for violations in the operation of the health plan. Health plan executive
gives up insurance licenseOrganizer Darren Larson must
also pay a $50,000 fineBy Rosemarie Bernardo
rbernardo@starbulletin.comLarson, wife Linda and mother Lydia Graham also agreed not to do insurance business in Hawaii.
State insurance Commissioner Wayne Metcalf yesterday announced that Hawaii HealthCare Alliance settled three administrative proceedings against the health plan.
Metcalf said, "Hawaii HealthCare Alliance was using new premium payments to pay old bills and was unfairly denying payments for services to avoid paying claims."
In October, the Insurance Division shut down Hawaii HealthCare Alliance after investigators determined the health plan was unlicensed and did not meet minimum capitalization and reserve requirements.
In January, Circuit Judge Sabrina McKenna ordered liquidation of Hawaii HealthCare Alliance, citing the agency's poor financial condition. The agency was found to be insolvent.
Metcalf had said the company's outstanding claims exceeded assets by $200,000 on Nov. 15. Records revealed complaints against Hawaii HealthCare Alliance involving allegations of improper denial of claims and unauthorized withdrawals of premium payments.
About 3,000 individuals were covered by Hawaii HealthCare Alliance when it was shut down. The plan targeted consultants and small-business owners not covered by Hawaii's Prepaid Health Care Act.
Metcalf said the settlement "does not preclude the liquidator from seeking compensation from all responsible parties contributing to Hawaii HealthCare Alliance's insolvency."