“Ohio's Obamacare plan has closed up shop, making 13 out of 23 consumer-oriented-and-operated plans to shutter.
InHealth Mutual in Ohio will shut down and will force more than 20,000 people to choose new plans. They will have 60 days to find a new plan. Ohio's insurance regulator said Thursday that it had to take control of the co-op because of major losses.
The Ohio co-op is the first one this year to close. Last year, 12 of the 23 taxpayer-funded plans shut down due to mounting financial losses and a lack of federal funding.
Including InHealth, the federal government has spent $1.3 billion to set up the co-ops, which were created to offer more competition on Obamacare's exchanges.” - Ohio Obamacare co-op collapses, Washington Examiner, 05/26/2016
Link to the entire article appears below:
http://www.washingtonexaminer.com/ohio-obamacare-co-op-collapses/article/2592429
‘NEW YORK (AP) — The sudden collapse of the largest nonprofit insurance cooperative created by President Barack Obama's health care law is causing headaches in New York, especially for medical providers owed millions of dollars for treating the failed plan's patients.
More than 200,000 people insured through Health Republic Insurance of New York have until Monday to sign up with another company if they want to maintain coverage in December.
State regulators ordered the insurer to shut down at the end of the month because of severe financial problems. They are also investigating what they say were inaccurate financial filings by the company.
The closure - part of a wave of failures of the new co-ops nationwide - has been a big hassle for Health Republic policyholders, who have had to shop around quickly for alternative coverage.
The situation may be worse, though, for doctors, hospitals and other clinicians. They are legally obligated to continue treating Health Republic patients through the end of the month but have been given no assurances they will ever be paid for that care.
"I'm aware of at least two physicians who have gotten checks from Health Republic, and those checks have bounced," said Dr. Joseph Maldonado, president of the Medical Society of the State of New York.
Two groups that represent hospitals, the Health Care Association of New York State and the Greater New York Hospital Association, said their member facilities are already owed at least $150 million, not including care provided in much of November.
Medical practices are likely owed millions of dollars more. A survey of 800 doctors by the medical society found that 43 percent were owed money by the company. Nearly 8 percent reported being owed $25,000 or more. One practice of 22 physicians reported being owed more than $5 million, the society said.’ - Health Co-Op Failure Leaves Doctors Owed Millions, insurancenewsnet.com, 11/24/2015
Link to the entire article appears below:
https://insurancenewsnet.com/oarticle/2015/11/24/health-co-op-failure-leaves-doctors-owed-millions.html
'A South Carolina health insurer has become the ninth insurance cooperative formed nationwide under the Affordable Care Act to fold.
Consumers' Choice Health Insurance Co. said Thursday that it will not sell policies in 2016, a decision that will leave 67,000 individuals and business customers looking for new coverage.
Ray Farmer, director of the South Carolina Department of Insurance, said Consumers' Choice and state regulators reached a mutual decision to shut down the company's business. He said the company was in a "financially hazardous condition."
"I did not have the confidence that this company would be a viable entity throughout the entire year of 2016," Farmer said.”' - Ninth cooperative formed under Affordable Care Act closing, AP, 10/22/2015
Link to the entire article appears below:
http://news.yahoo.com/ninth-cooperative-formed-under-affordable-care-act-closing-214059601.html
‘A Nevada health insurance provider that received more than $65 million in taxpayer-funded loans from the federal government announced last week that it is discontinuing operations at the end of the year.
The Nevada Health Co-Op will close its doors beginning Jan. 1 because of “challenging market conditions.” The co-op will be the third of the 23 consumer-oriented and operated plans created under Obamacare to shutter.’
‘The 23 co-ops received $2.5 billion in loans from the Centers for Medicare and Medicaid Services to help get off the ground and remain solvent. The federal government awarded the Nevada Health Co-Op $65.9 million in startup loans. It’s unclear whether the co-op will be able to repay the loans.
According to the Nevada Health Co-Op, it enrolled 14,000 consumers in 2014. However, the nonprofit insurer projected it would enroll 33,748, according to a July audit of co-ops from the Department of Health and Human Services inspector general.’
‘The analysis from the Department of Health and Human Services also found that the Nevada Health Co-Op projected that it would make $371,000 in 2014. However, it lost more than $15 million.’ - This Obamacare Co-Op Was Supposed to Make Money. Instead, It Lost Over $15 Million, 08/31/2015, dailysignal.com
Link to the entire article appears below:
http://dailysignal.com/2015/08/31/this-obamacare-co-op-was-supposed-to-make-money-instead-it-lost-over-15-million/?utm_source=heritagefoundation&utm_medium=email&utm_campaign=morningbell&mkt_tok=3RkMMJWWfF9wsRohvq3OZKXonjHpfsX56OgvWa%2BylMI%2F0ER3fOvrPUfGjI4ATMpnMK%2BTFAwTG5toziV8R7jHKM1t0sEQWBHm
“WASHINGTON (AP) — Fed up with the insurance industry, Democrats used the health care overhaul to create nonprofit co-ops that would compete with the corporations. Now a government audit finds co-ops are awash in red ink.
Only one out of 23 — the co-op in Maine — made money last year, said Thursday's report from the Health and Human Services inspector general's office. Thirteen lagged far behind their sign-up goals for 2014.
The Massachusetts co-op spent more than six times as much on administrative expenses as it collected in premiums.
The audit raised questions about whether co-ops will be able to repay $2.4 billion in taxpayer-financed loans that President Barack Obama's overhaul provided to help stand them up.
"The low enrollments and net losses might limit the ability of some co-ops to repay startup and solvency loans, and to remain viable and sustainable," said the report.
The inspector general recommended closer supervision of the co-ops by the Obama administration as well as clear standards for recalling loans if a co-op is no longer viable.” - Health Insurance Co-Ops Bleed Red Ink, insurancenewsnet.com, 07/30/2015
Link to the entire story appears below:
https://insurancenewsnet.com/oarticle/2015/07/30/nonprofit-health-insurance-co-ops-awash-in-red-ink.html
