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Land of Lincoln Mutual Health Insurance Company (“Land of Lincoln”) was a federally funded start-up mutual health insurer organized as a Consumer Operated and Oriented Plan (‘CO-OP") under the Affordable Care Act and was licensed under the Illinois Insurance Code by the IDOI in April, 2013. CO-Ops were sponsored by the Centers for Medicare and Medicaid Services to increase competition among insurance companies and thereby lower prices for consumers. When placed into rehabilitation, Land of Lincoln provided health insurance to approximately 49,000 Illinois residents.

In June 2016, Land of Lincoln filed a lawsuit against the United States (the U.S.), Land of Lincoln Mutual Health Insurance Company v. The United States of America, in the Federal Court of Claims seeking a recovery arising from the U.S.’s failure to make full Risk Corridor payments due under the Affordable Care Act for calendar years 2014-16, totaling approximately $160 million.

On July 14, 2016, the Circuit Court of Cook County, Illinois (the “Supervising Court”) entered an Agreed Order of Rehabilitation against Land of Lincoln in accordance with the provisions of Article XIII of the Illinois Insurance Code, 215 ILCS 5/187 et seq.

On September 29, 2016, the Supervising Court entered an Order of Liquidation against Land of Lincoln, effective October 1, 2016, in accordance with the provisions of Article XIII of the Illinois Insurance Code, 215 ILCS5/187 et. seq.

In November 2016, the Federal Court of Claims, before which Land of Lincoln Mutual Health Insurance Company v. The United States of America (the “Litigation”) was pending, entered an order granting the U.S.’s motion for judgment on the administrative record. The Federal Court of Claims decision was subsequently affirmed on appeal by the Court of Appeals for the Federal Circuit. The Liquidator’s petition for certiorari to the U.S. Supreme Court was granted in June 2019. In an opinion issued on April 27, 2020, the U.S. Supreme Court reversed the decisions of the lower courts, ruling that the Estate (together with three other plaintiff health insurers) could recover Risk Corridor payments through the Federal Court of Claims and remanded the proceedings to the Federal Court of Claims for judgment consistent with its ruling. On June 17, 2020, the Receiver filed an unopposed motion to remand to the Federal Court of Claims for disposition. Judgment in the amount of $90,804,578 (an amount net of the Estate’s mutual obligations due to the U.S.) was entered on July 20, 2020, and paid to the Estate on August 6, 2020. $68,867,200 of the judgment proceeds were paid to Juris Capital, LLC (“Juris”) which had previously entered into two, court approved, transactions whereby in consideration of Juris’ payment of net proceeds to the Estate in the approximate amount of $28,725,000, Juris purchased an interest in the proceeds, if any, of the Litigation.

On December 21, 2020, the Supervising Court approved a 100% (100 percent) dividend to be distributed on all timely filed claims allowed at priority level (d) of Illinois’ statutory distribution schedule (i.e., policyholder claims). The Supervising Court’s order approved the distribution of Estate assets in the amount $53,679,345.83, $38,905,745.41 of which had previously been advanced to the Illinois Life And Health Insurance Guaranty Association pursuant to the “Insurance Guaranty Association Early Access Distribution and Expense Reimbursement Plan for Land of Lincoln Mutual Health Insurance Company, In Liquidation” approved by the Supervising Court in an order entered on October 18, 2016.

On January 21, 2021, the Supervising Court approved a 100% (100 percent) dividend to be distributed on all timely filed claims allowed at priority level (g) of Illinois’ statutory distribution schedule (i.e., general creditor claims). The Supervising Court’s order approved the distribution of Estate assets in the amount $32,175.34 to general creditor level creditors.

In accordance with Section 210 of the Illinois Insurance Code, on February 19, 2021, the Supervising Court entered an order establishing a second claim filing deadline of August 19, 2021, at 4:30 p.m. C.D.T. (the “Second Claim Filing Deadline”). On July 15, 2022, the Supervising Court entered an order approving a 100% (100 percent) first and final dividend on both policyholder claims allowed for purposes of the Second Claim Filing Deadline at priority level (d) of Illinois’ statutory distribution schedule and general creditor claims allowed for purposes of the Second Claim Filing Deadline at priority level (g) of Illinois’ statutory distribution schedule. In accordance with the Supervising Court’s July 15, 2022, order an additional $55,859.97 in Estate assets was distributed.

On July 19, 2023, the Supervising Court entered an order in accordance with 215 ILCS 5/210(3) authorizing the Liquidator to effectuate the issuance of a 100% (100 percent) dividend, payable from Estate Assets, on all claims allowed at priority level (f) of Illinois’ statutory distribution schedule, resulting in a distribution to the United States Internal Revenue Service in the amount of $1,089,029.78.