New York health Co-op ordered to shut its doors
- Citing the likelihood the organization will become financially insolvent, New York State Department of Financial Services (NYDFS) ordered Health Republic Insurance of New York to stop selling policies and eventually cease operations.
- Existing individual insurance policies will remain in effect through Dec. 31. The decision will affect 108,000 individuals, according to The New York Times.
- The insurer has received $265 million in U.S. loans via the ACA. Bloomberg Business reports it is unlikely the co-op will have to repay the full amount.
NYDFS announced its intention to commence an “orderly wind down” of Health Republic ahead of the November 1 start of the New York State of Health open enrollment period for 2016 policies. A total of 16 health insurers are expected to offer individual coverage for 2016 on New York State of Health.
According to a prepared statement from NYDFS, existing small group plans currently remain in effect. The department, along with New York State of Health, will evaluate the best course of action “with regard to small group plans based on Health Republic’s ongoing financial results.”
- The New York Times New York State orders Health Republic co-op to end new business
- Bloomberg Business N.Y. to shut Obamacare insurer with $265 million in loans
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