Well this didn’t take long. Gee, who would have predicted it?
A nonprofit insurer born out of Obamacare is being shut down by state insurance regulators and the federal government.
Health Republic Insurance was ordered by the New York State Department of Financial Services, the Centers for Medicare and Medicaid Service, and the state’s Obamacare exchange, the New York State of Health, to stop writing new policies and wind down its existing policies once they expire. Those policies will be in effect through Dec. 31.
Manhattan-based Health Republic was New York’s only co-op insurer, a new model created under Obamacare. The federal government provided some two dozen co-ops with loans to help them establish new consumer-governed, nonprofit health insurers.
DFS made the announcement before the new open-enrollment period begins for the insurance exchange on Nov. 1.
In a statement, Anthony Albanese, the state’s acting insurance superintendent, said, “Given Health Republic’s financial situation, commencing an orderly wind-down process before the upcoming open-enrollment period is the best course of action to protect consumers.” (Read More)
Health Republic lost millions of dollars, even after hundreds of millions in low interest loans from the federal government.
H/T Charles B.