Receivership Orders

An Order of Conservation was entered against Medcare HMO, Inc. on December 22, 1992 in the Circuit Court of Cook County Illinois. Medcare was incorporated on November 16, 1984, and certified as a Health Maintenance Organization (HMO) on October 1, 1985.

On June 3, 1992 Medcare filed a voluntary petition for bankruptcy in the Federal Court. The Director of Insurance for the State of Illinois moved to dismiss the bankruptcy action, but his motion was rejected. A subsequent appeal by the Director led to a reversal of the Bankruptcy Court's decision and on December 3, 1992, the bankruptcy action was dismissed, declaring Illinois HMOs ineligible for bankruptcy protection,which was subsequently appealed and affirmed by the 7th Circuit Court of Appeals. The Director then petitioned the state court to seize control of Medcare, resulting in the Order of Conservation. Simultaneously, the Director petitioned the court for liquidation of Medcare. An Order of Liquidation was entered on January 4, 1993.

The claim filing deadline was January 4, 1994.  Early access distributions of $11,916,746 have been made to the Illinois HMO Guaranty Association for administrative expenses and claim benefits.

On August 23, 2007, the Supervising Court approved final dividends in the amount of 100% to all claimants whose approved claims fell within priorities “a” – “c” of the statutory distribution schedule, and 25.2645% on all claims allowed at priority level “d(1).” The Court also approved the closing of the estate and termination of the liquidation proceedings.