Health Republic, one of the largest Obamacare co-ops that has failed, is planning to leave hospitals and other health care providers on the hook for tens of millions of dollars in unpaid claims. According to the Post Standard New York hospitals are owed $160 million by Health Republic, but the state is telling the insurer to stop paying claims even though itâ€™s in business for the rest of the month and providers are required to deliver care to itâ€™s customers. And thatâ€™s not counting what individual providers are owed.
The state has told Health Republic to stop paying some claims so it can conserve its assets and facilitate an orderly shutdown. Even though some providers are not getting paid, they are still contractually obligated to deliver services to patients, said Matt Anderson, a spokesman for the state Department of Financial Services.
Melissa Mansfield, a HANYS spokeswoman, said the estimated $160 million the insurer owes hospitals does not include the cost of care provided in November.
“HANYS continues to raise very serious concerns about the consequences of such a tremendous financial loss when hospitals are already financially fragile,” she said in an email.
State and federal regulators are shutting down Health Republic because it is going broke. Experts say the health insurance co-op failed because its premium prices were too low and it did not receive as much federal money as expected. (Read More)
This is what happens when politicians think they know how to run things better than the markets.