ACA Government Co-Ops: Is This Experiment Working In Your State?

[AllenChicago]

I received a memo yesterday. Looks like Ohio's Co-Op IN-HEALTH - Coordinated Health Mutual, Inc is done.
Appears to be going into receivership.
Another One bites the dust.
Oh, I guess Allen just posted on Ohio, My bad

You gave some additional info that wasn't in thehill.com, Jeff. Thanks!
-Allen

 

[CHUMPS FROM OXFORD]

Too bad. I guess my $240-$270 per month checks will stop coming. Oh well.

 

[HealthRisk]

May 26, 2016

Is this our first Co-Op failure of 2016?

Now there is the 2nd. CT co-op is done.

Thousands Will Need New Insurance After HealthyCT Deemed Financially Unstable | NBC Connecticut

The state Insurance Department has placed HealthyCT under an immediate order of supervision and said policy holders will be covered through the end of the current policy, but members will need to choose new carriers when their policies end.

A statement from the Insurance Department says the decision comes about because HealthyCT’s financial health is unstable and was seriously jeopardized by a federal requirement issued June 30.[...]

“Unfortunately HealthyCT’s financial health is unstable, having been seriously jeopardized by a federal requirement issued June 30, 2016 that it pay $13.4 million to the U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services as part of the Affordable Care Act’s Risk Adjustment Program,” the commissioner said in a statement. “As a result, it became evident that this risk adjustment mandate would put the company under significant financial strain. This order of supervision provides for an orderly run-off of the company’s claim payment under close regulatory oversight.”

 

[AllenChicago]

July 5, 2016

Does a state insurance director have this much authority? Seems illegal. What if every health insurer opted not to pay into the ACA insurance company risk pool this year?

Excerpt:

"The Illinois Department of Insurance has stepped in to protect the policyholders of troubled Land of Lincoln Health Co-op, a startup insurer created under the Affordable Care Act.

The agency has ordered the Chicago-based nonprofit insurer to withhold paying $31.8 million it owes under a federally mandated program for adjusting financial risk under the health care law."

Source: Illinois regulators move to protect Land of Lincoln policyholders - Chicago Tribune

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What an illogical crazy punishment.. The more money a Co-Op loses, the more it has to contribute in Risk-Adjustment payments the following year.

Bells Toll For At Least 2 More ObamaCare Co-Ops | Stock News & Stock Market Analysis - IBD

A forced death-spiral, courtesy of the very Government that created these entities!

 

[HealthRisk]

The second Oregon co-op is done as well.

Oregon Live

 

[AllenChicago]

July 12, 2016

Here in Illinois, Land of Lincoln Health Co-op is circling the drain. The FEDS said, "We won't pay you the $73 million we promised from the 2015 risk-adjustment pool, but you will pay $31 million into the 2016 risk-adjustment pool...or else!"

So today, the Illinois Department of Insurance is intervening to force a shutdown of the LOLH Co-operative.

Full Story: Illinois moves to shut down failing health insurance co-op | Chicago Sun-Times

Moving my 35 or so Land of Lincoln Health clients into $0 commission companies with skinny networks, later this Summer, will not be fun.

 

[tonyisme]

Co-ops seemed like an alternative valid way of family healthcare protection from a potential looming financial disaster back in the day. With ACA, DOI, HHS breathing down the neck of these organizations this is sad. The employees and execs losing their jobs and all the people who have to scramble to seek some kind of coverage (if they can find any) and many are sick. DISASTER.

 

[Yagents]

DC not willing to work with Cheecago?

http://www.modernhealthcare.com/art...ntent=20160713-NEWS-307139997&utm_campaign=am

That didn't work, according to the Illinois department's news release, which said the federal Centers for Medicare and Medicaid Services would not suspend the company's risk adjustment program liability.

 

[AllenChicago]

DC not willing to work with Cheecago?

http://www.modernhealthcare.com/art...ntent=20160713-NEWS-307139997&utm_campaign=am

The Illinois Director of Insurance lost her spine. She ordered LOLH not to pay the government $31 million, until the government paid LOLH the $73 million it owed the insurer.

Obama's HHS responded with, "No way IL-DOI. Land of Lincoln Health must pay us, even if it drains the pool being used to pay policyholder claims!"

DOI gave up without a fight. I'm sure the few at that top of Land of Lincoln Health will FIND a way to skim some $$$ for their personal pockets before the state takes over and begins liquidation. It's the Cheecago way.

 

[somarco]

We (CMS) can renege on our obligation but you (taxpayer) can't renege on yours.

Sounds reasonable.