How to fix a taylor insurer, which was already in trouble
— The Insurance Department has launched an investigation into how Taylor Insurance Agency was already struggling to get insured in Florida after it went bankrupt and laid off nearly all of its employees in December.
The company, which is a subsidiary of the private-equity firm Colony Capital, is one of the state’s biggest insurers, covering more than 7.7 million Floridians, according to a state audit released Friday.
TLC lost nearly $200 million in the three months ended June 30.
The audit also shows that the agency, which has been a TLC subsidiary since 2013, has been in trouble before, as TLC was once fined for violating state law that bars companies from being “partner or participant” in health care contracts.
The auditors said the company, with about 2,400 employees, did not follow procedures in conducting a financial audit of the contracts it signed in the late 1990s.
The auditors also noted that the company failed to provide sufficient information about its financial position and had a history of poor management practices.
The state auditor said the agency failed to adequately manage the cost of care for TLC’s Medicaid patients, a condition that caused many to withdraw coverage.
It also failed to follow state regulations that require the agency to report any financial losses to the state, the audit said.
“This is the type of financial problem we have had in the past, and it’s going to be another big problem,” said state Auditor General John Carlin.
“There are very serious issues here.
We are going to have a lot of problems with this.
The agency was doing some of the most expensive business out there and it was not properly managing its money,” he added.TLC said in a statement that it is cooperating with the investigation.