MagnaHealth was incorporated under the laws of the State of New York on May 15, 1995 and was authorized to do business as a health maintenance organization ("HMO") as defined in Article 44 of the New York Public Health Law on April 4 1996. MagnaHealth was a for-profit corporation owned by five individual shareholders.
MagnaHealth applied to the New York State Deptartment of Insurance ("NYSDOI") to liquidate and obtained a limited, revised Certificate of Authority, effective May 1, 2004. This granted authority to close out activities. Notices were sent to members and plan providers terminating coverage and contracts as of May 1, 2004.
The New York State Department of Insurance determined that the wind-down of operations yielded the expected result and the HMO should be placed into liquidation in order to resolve any outstanding issues. MagnaHealth consented to an Order of Liquidation. The Order was entered on August 24, 2005.