HMO serving Las Vegas to close

Friday, Oct. 5, 2001 | 9:48 a.m.

CARSON CITY -- A health maintenance organization that provides coverage for an estimated 6,400 customers in Las Vegas is closing.

State Insurance Commissioner Alice Molasky-Arman said Thursday that Cohen Medical Corp. has filed for bankruptcy in California. Cohen does business in Nevada as Tower Health Nevada.

Molasky-Arman said at least three Nevada companies are working with agents to place the policyholders of Tower so they do not lose coverage.

The commissioner said she was irked at the short notice given by California regulators that Tower was going to close. She said she made persistent and repeated requests that California regulators keep Nevada policyholders informed about the plans.

Molasky-Arman issued an order on Sept. 20 to seize the funds on deposit of Tower. She said her lawyers are reviewing the legal effect of the California bankruptcy on the seizure.

She said those Nevadans with group coverage under Tower should talk to the personnel office of their employer. If the employer does not provide a policy, the person may be eligible to buy an individual policy. Or the individual may be able to get coverage if the spouse has a health insurance policy.

Those consumers with questions about claim payment or other issues should contact Tower Health at 1-800-869-3728. If they have problems relating to their insurance, they can call the insurance division at 486 4009 in Las Vegas for (775) 687 4270 in Carson City.