- Kentucky Health Cooperative announced it is going out of business and will end its 51,000 memberships on Dec. 31.
- Those in need of insurance, said Gov. Steve Beshear (D), can choose insurance from seven different companies on Kynect, the state's health insurance exchange, during open enrollment from Nov. 1 to Jan. 31, 2016.
- The co-op lost $50 million last year after selling 75% of the private insurance policies purchased on Kynect in its first year.
As previously reported by Healthcare Dive, 22 of the 23 state co-ops have struggled with costs (except Maine) and have had lower than expected enrollees. Two other co-ops have closed since August: New York and Nevada. Glenn Jennings, interim CEO of Kentucky Health Cooperative, said it lacked adequate federal funding to keep its doors open.
Last week, the federal government said it would only provide 12.6% of funds required by insurance providers through the assistance program. Jennings said Kentucky hoped to receive $77 million but was given only $9.7 million.
The co-op is working with the Kentucky Department of Insurance and CMS to help ensure a "smooth transaction," according to Kentucky.com.