The case is rooted in a familiar insurance problem: who pays for claims that surface after a deal closes. Centene sold its correctional healthcare subsidiary, MHM Services, to Centurion. Before the sale, Centene insured MHM for medical malpractice through Health Net Life Reinsurance Company, a wholly-owned indirect Centene subsidiary the court calls HealthNet. According to the ruling, HealthNet provided that coverage through reinsurance arrangements, agreeing to indemnify commercial insurers for liabilities they took on under the policies and for costs above the retention amounts on covered medical malpractice claims.
