Des Moines - A ruling by the Polk County District Court on August 31 ordered $481,500 in penalties for contempt of court related to conduct of the Senior Health Insurance Company of Pennsylvania (SHIP PA), the commissioner of insurance in Pennsylvania, and the special deputy rehabilitator for SHIP PA.
“Senior Health Insurance Company of Pennsylvania is in court rehabilitation in Pennsylvania under the direction of a special deputy rehabilitator appointed by the Pennsylvania insurance commissioner, but its repeated efforts to change Iowa policyholder rates and benefits, including the recent mailings to Iowans, have caused policyholder confusion and violated both Iowa law and the Polk County District Court’s previous injunction,” Iowa Insurance Commissioner Doug Ommen said. “Many of these policyholders are older and many are on claim in long term care facilities. The Iowa Insurance Division has been in contact with Iowans impacted or their families, but we urge any policyholders to reach out to our office with any questions or concerns so they can make informed decisions.”
SHIP PA policyholders and their family representatives should carefully review any communications they have received from the company. If policyholders have questions or concerns about their policies or about any communications from SHIP PA they should contact Insurance Complaint Analyst Sue Wittmack at 515-654-6606.
In 2022, Commissioner Ommen filed suit against SHIP PA after it declared that it would change rates and benefits for Iowa policyholders without going through the required approval process with the Insurance Division.
On March 23, 2023, the Iowa district court for Polk County issued a preliminary injunction that ordered SHIP PA to refrain from changing any rates or benefits for Iowa policyholders without the Commissioner’s prior approval.
The August 31, 2025 ruling orders SHIP PA to cease and desist from any further violations of the order.
Similar legal proceedings are occurring in North Dakota.