LA Universities to Receive $2.7M After Demise of AmCare

AmCare Settlement

LA Universities to Receive $2.7M After Demise of AmCare

The demise of AmCare Health Plans of Louisiana, Inc. began in 2002 when investigators discovered the company was undercapitalized. Investigators determined that AmCare did not have enough funds to sustain normal business operations and pay its creditors. The dissolution of the health management organization was a shock to the higher education community in Louisiana that relied upon it. AmCare had been feigning health by transferring assets back and forth between sister companies. A favorable court order declared that six Louisiana universities would receive money owed to them. 19th Judicial District Court Judge Janice G. Clark of Baton Rouge signed the plan for distributing the funds.

The six universities receiving surplus funds 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. These schools will receive equal amounts of $460,000. Additionally, the universities may seek matching funds from the Kevin P. Reilly Sr. Louisiana Education Quality Trust Fund (LEQTF) established .n the state constitution. Louisiana Insurance Commissioner Jim Donelon was pleased with the result of the court order saying, “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.” Commissioner Donelon stated that the rest of the funds owed by AmCare would be investigated “in our next generation through educational insurance and business programs at these institutions.”

The legal battle to reclaim funds from AmCare began when the Louisiana Department of Insurance, as well as Texas, and Oklahoma regulators sued AmCare for breach of contract. Lower courts awarded damages to Louisiana, Oklahoma, and Texas. The Louisiana Supreme Court followed the lower courts’ rulings and allowed for the Commissioner of Insurance to disburse the funds collected from AmCare’s liquidation. Thanks to this ruling, providers, and policyholders of AmCare are allowed to receive their payments.

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Melinda Martin

Account Executive

Melinda began her insurance career in 1985 with Alexander & Alexander where she received her Property & Casualty and Life & Health license. Since then she has worked at various agencies in the New Orleans area and in California as a senior account manager for Employee Benefit Plans.  While in California, she was also the Membership Director for the Burbank Chamber of Commerce. Melinda joined the AWS team in July of 2015.

Michael A. Seeling

Vice President

Graduated from the University of Louisiana at Lafayette with a B.A. in Insurance Risk Management and is a graduate of Archbishop Rummel High School in New Orleans. He joined AWS in October of 2008 and has been awarded the Patient Protection and Affordable Care Act Certification (PPACA). Additionally, he is working towards his Certified Insurance Counselor (CIC), Registered Health Underwriter (RHU), and Registered Employee Benefits Consultant (REBC) designations. He is also a member of the National Association of Health Underwriters (NAHU), National Association of Insurance Financial Advisors (NAIFA), and is an active member of the Fore!Kids foundation.