Multimillion Dollar Victory Secured for Geisinger

On September 9, Stradley Ronon, representing the Geisinger Health Plan, prevailed before the en banc Commonwealth Court in an appeal over millions of dollars in assessments by the Pennsylvania Life and Health Guaranty Association arising from the insolvency of a long term care insurance company, Penn Treaty. The Association assessed health insurers on premiums received from sales of Medicare Part C and D insurance products. For its part, Geisinger was assessed $3.2 million. Other insurers – represented by prominent national and regional law firms – were assessed another $15 million. All of the insurers appealed, asserting federal law preempted the assessments. Following an Insurance Department ruling in the insurers’ favor, the Association took the matter to Commonwealth Court, which heard the case en banc. Karl Myers, chair of Stradley Ronon’s appellate practice, was chosen to argue the case on behalf of all the insurers. The Court agreed with all of the points Myers delivered at argument and thus ruled — unanimously — in the insurers’ favor. As a result, the insurers expect to receive the
$18 million worth of assessments back from the Association.

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