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Insurance Department Announces Senior Health Insurance Company of Pennsylvania Placed in Rehabilitation

Harrisburg, PA – Pennsylvania Insurance Commissioner Jessica K. Altman announced today that at her request the Commonwealth Court of Pennsylvania placed Senior Health Insurance Company of Pennsylvania (SHIP) in statutory rehabilitation, appointing her as Rehabilitator. In turn, Commissioner Altman appointed Patrick H. Cantilo as Special Deputy Rehabilitator (SDR). This action was taken with the consent of SHIP's board of directors and the trustees of the Senior Health Care Oversight Trust, which owns SHIP.

"This action was necessary to protect the interests of SHIP's policyholders and creditors," Altman said.

On March 1, 2019, SHIP filed with the department its 2018 statutory annual financial statement reflecting a surplus deficit of more than $466 million, rendering the company statutorily insolvent as defined in 40 P.S. § 221.3. Also, the company's most recent risk-based capital (RBC) report indicates that its total adjusted capital is substantially below its mandatory control level RBC, thereby triggering a "mandatory control level event" as defined in 40 P.S. § 221.1-A.  The company was not able to develop a corrective action plan to remedy these conditions.

"Rehabilitation is a court-supervised process intended to remedy the company's financial deterioration for the benefit of policyholders and creditors," Altman said. "The Rehabilitator and the SDR are charged with the protection of SHIP's policyholders, creditors, and the public. Our actions are dictated by the laws and regulations of Pennsylvania and are subject to review by the Commonwealth Court."

Altman, as Rehabilitator, intends to file a Rehabilitation Plan for SHIP. Commonwealth Court has established a deadline of April 22, 2020, for the filing of a preliminary rehabilitation plan. For now, the company's business will continue as before but under the direction of Commissioner Altman as Rehabilitator and Mr. Cantilo as SDR. 

"At this time there will be no immediate changes to the company's insurance policies," Altman explained. "But such changes may be part of any rehabilitation plan.

"Pending the rehabilitation plan, claims and benefits will continue to be paid as they were before the order. It is important that policyholders continue to pay their premiums to avoid cancellation or their policies and loss of valuable insurance coverage."

Notice and details of the rehabilitation plan will be provided to all policyholders and interested parties and they will have an opportunity to comment upon, or object to, the proposed plan before the court decides whether to approve, modify, or reject it.

More information is available on the Department's website and on the company's website at


MEDIA CONTACT: Thaisa Jones,, 717-214-4781



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