Family Health Hawaii

Family Health Hawaii, MBS, in Liquidation
Frequently Asked Questions

UPDATED — JULY 2020

Background

On April 7, 2016, the Insurance Commissioner of the State of Hawaii (“the Commissioner”) was appointed as Liquidator of Family Health Hawaii (“FHH”), MBS, a Mutual Benefit Society, by State First Circuit Court Judge Karen T. Nakasone.

An Order of Liquidation was filed on April 7, 2016, pursuant to the provisions of the Insurers Supervision, Rehabilitation and Liquidation Act, Hawai`i Revised Statutes, Chapter 431, Article 15, and Mutual Benefit Societies, Hawai`i Revised Statutes, Chapter 432, Article 1, of the Hawai`i Insurance Code. FHH was placed into Liquidation because the company was operating in a hazardous condition that posed a risk to the members and the creditors if the operations were to continue.

The Order authorized the Commissioner to take possession and control of FHH’s assets, books, and records, and to assume the powers of the company’s directors and officers for the protection of policy holders, creditors and the public.

FHH mailed a Notice of Liquidation to all policyholders notifying them that all policies would terminate, at the very latest, on May 6, 2016.

The Proof of Claims submission period ended on December 15, 2016. All claims filed by the deadline are being processed to determine which claims will be paid and which will be denied. A Notice of Determination (NOD) will be sent to all claimants advising them of the amount they will be paid, if any, for their claims. The amount is based on a payout percentage of total funds available to pay claims as approved by the court. Claimants will have 60 days to respond, if they want to dispute the NOD. Distribution of claims payments will be made according to the priority of distribution as set forth in the law.

The 2016 Form 1095-B for individual Health Coverage verification will be sent out by the new IRS deadline of March 2, 2017.

As of April 23, 2019, the Circuit Court of the First Circuit State of Hawaii approved a Partial distribution of class 2 claimants of Family Health Hawaii, MBS. On May 10, 2019, the Liquidator mailed the check with a cover letter to all class 2 claimants. Please cash your distribution check by June 9, 2019, thirty (30) days from the mailing date of the check.

If you have not received your check by May 24^th, 2019, please contact the Liquidator immediately. Failure to correct any errors prior to the June 9, 2019 may result in a transfer of your claim amount to the Unclaimed Property Program using the information the Liquidator currently has on file.

As of June 2020, pursuant to the Notice of Liquidator’s Motion for Approval of Final Distribution, the Liquidator of Family Health Hawaii MBS will post a copy of the Liquidator’s Motion for Final Distribution on this website upon the Liquidator’s filing of the Liquidator’s Motion for Final Distribution and the Liquidation Court’s assignment of a hearing date and time for such Motion. The Liquidator will file the Liquidator’s Motion for Approval of Final Distribution no earlier than 30 days after the date of the Notice of Liquidator’s Motion for Approval of Final Distribution that you received as a creditor of Family Health Hawaii, MBS.

The Liquidator has filed his Motion for Approval of Final Distribution and the hearing on the Motion is scheduled for August 12, 2020 at 8:30 a.m. before Judge John M. Tonaki.

For further information or questions, please email: [email protected] or call (844) 717-7334.

Press Release – April 7, 2016

Liquidation Order (PDF)

FHH Publication Notice (PDF)

FHH Provider Notice Letter (PDF)

FHH General Notice Letter (PDF)

FHH Notice of Determination (PDF)

FHH Name Address Change Form (PDF)

FHH Order Granting the Motion (PDF)

FHH Notice of Motion (PDF)

FHH Partial Payment Cover Letter (PDF)

FHH Final Distribution Notice – June 2020 Update (PDF)