update: monday, August 12, 2024
Major TPA Shuts Down, Jeopardizing Healthcare Access
A large regional third-party administrator, ValueHealth Benefit Administrators (VHBA), abruptly ceased operations, placing healthcare access and plan sponsors in limbo. The sudden closure leaves critical questions unanswered regarding claim payments, client bank accounts, and contract obligations.
According to The Great Bend Tribune, the shutdown was announced via a late-night text message, followed by a virtual meeting on Wednesday, August 8, 2024, where employees were informed that BMI, a division of VHBA, had filed for bankruptcy and ceased all operations.
Their website and their social accounts seem to have been taken down or deleted, leaving plan sponsors, members and brokers no way to contact them.
We are updating this page as more information emerges.
Q&A: What You Need to Know
Q: How does this affect my healthcare plan?
A: The abrupt closure of VHBA means that claim payments and other administrative services may be disrupted. We recommend contacting your plan sponsor or HR department for immediate guidance.
Q: Are existing contracts still valid?
A: PBM and Stop Loss contracts are independent of VHBA, and can likely can maintained if funded in a timely manner.
Q: What steps should plan sponsors take now?
A: Plan sponsors are fiduciaries, and are required to ensure their proper administration of their health plan. Plan sponsors may be liable for plan assets that aren’t handled properly, and should consult with their legal and financial advisors immediately to explore alternative arrangements and ensure continued access to healthcare services for their members.
Q: Will my healthcare claims be paid?
A: Not by VHBA. The processing of claims is one of the key concerns, and plan sponsors should ensure continuity concerns are addressed as soon as possible.
Q. Will a new TPA be able to access my claims/deductible data?
A. Yes, sources close to VHBA say the data is independently warehoused, and can be recovered and restored with a new TPA relationship.
