GNYHA Testifies at DFS Hearing on MLMIC Demutualization

August 27, 2018

On August 23, GNYHA testified at a public hearing on the conversion of the Medical Liability Mutual Insurance Company (MLMIC) to a stock insurance company from a mutual company as part of a proposed acquisition of MLMIC by a Berkshire Hathaway company. If the New York State Department of Financial Services (DFS) approves the conversion, MLMIC policyholders will receive cash distributions as part of the transaction. GNYHA’s advocacy has centered on the rights of hospitals and other institutional employers to object to payouts of cash considerations to policyholders to whom they paid premiums during the relevant years of the proposed conversion plan. MLMIC’s position is that some—though not all—of these employers may file objections, which we think is unfair. GNYHA’s testimony emphasized that we support the conversion and related transaction and do not wish to see them delayed. We urged DFS Superintendent Maria T. Vullo to include clarifying language in her final order approving the plan noting that MLMIC should accept objections from all entities that functioned as policy administrators. GNYHA expects DFS to issue its final order shortly after August 28, which is when the DFS comment period closes.