Three hospital-owned health plans in Indiana have sued the state's high-risk insurance fund, alleging it is taxing them unfairly and in violation of the state Constitution. M-Plan of Indianapolis, Partners National Health Plan of South Bend and Advantage Health Plan of Carmel filed the 10-page lawsuit in state court in Marion County yesterday. Indiana's Comprehensive Health Insurance Association covers about 10,000 people who can't get health insurance because they have AIDS or other pre-existing conditions. State law caps premiums, and the plan has seen record deficits recently -- $54 million in 2001 and a projected $75 million this year. Tax-deductible assessments on private health plans cover the fund's losses. M-Plan spokeswoman Tammy McGuire said the HMO, owned by Indianapolis-based Clarian Health Partners, paid $5.5 million in assessments in 2001 -- three times its net income that year -- and has accumulated more than $12 million in tax credits it cannot use. The suit seeks a court order changing the assessment methodology to divide the high-risk insurance fund's losses equitably among insurers, based on the after-tax value of contributions. -- by Mark Taylor
HMOs challenge Ind.'s high-risk insurance fund
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