New York State
Insurance Department

ISSUED: August 3, 1999


Policyholders are Protected; Vytra Must Pay Outstanding Claims

        Superintendent Neil D. Levin today announced that the Department has ordered Melville-based Vytra Health Plans to reinstate the enrollees whose policies were terminated as a result of Vytra’s assertion that Long Island Community Alliance failed to forward payments from members. In July Vytra informed 500 of its subscribers that their policies were terminated as of March 1 due to non payment of premiums.

        "Plain and simple, we are protecting the subscribers whose policies have been terminated by ordering Vytra to rescind the cancellation notices," said Levin. "Those subscribers who paid their premiums on time and in full had no way of knowing that Vytra didn’t receive payment. This is a clear case of consumer rights and we will make sure that the company pays all outstanding claims."

        The 500 subscribers are members of the Long Island Community Alliance and therefore send their monthly premium checks to the alliance, which in turn sends the payments to Vytra. However, the Department received complaints from consumers whose policies were terminated because the alliance bounced premium checks to Vytra.

        The Department sent a letter to Vytra today informing them of the policy. As a result, Vytra will be required to rescind the cancellation notices it issued in July and must pay all outstanding claims.