Ohio doctor-owner insurance plan goes under

Worthington-based physician-owned health insurer The Physicians Assurance Corp. has been deemed insolvent by the Ohio Department of Insurance (Source: “Doc-owned insurer folds,” Business Courier of Cincinnati, Aug. 19, 2009).

TPAC was approved for business by ODI in early 2008 when it had $5.6 million in reserves (more than double the state minimum) from about 100 physician investors. It started writing polices last fall and had enrolled 170 employers representing 4,300 members by the end of January.

However, the plan lost $2.4 million in the first six months of 2009 had a reserve of $419,000 as of June 30, $2.1 million below the state required minimum.

“They had some very unusual claims anomalies,” explained Michael D’Eramo, an early investor and former board member (full disclosure: D'Eramo also does consultanting work for the Health Policy Institute of Ohio).