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Conn. co-op doomed by risk-adjustment charges


The beautiful Connecticut  State Capitol in not entirely beautiful Hartford.

Connecticut’s co-op insurer HealthyCT is joining the  list of co-operatives created under the Affordable Care Act forced to close by a huge CMS risk-adjustment charge created by the ACA. The Nutmeg State’s  insurance regulator said the required payments made the plan financially unstable.

The Connecticut Insurance Department has placed HealthyCT under an order of supervision, preventing the insurer from writing new business or renewing existing policies with its customers. HealthyCT provides insurance for 40,000 people: 13,000 on individual plans and 27,000 members on employer plans.

The CMS’s permanent risk-adjustment program is meant to spread insurance risk among all ACA insurers and prevent companies from only covering the healthiest members.

To read the article on this, please hit this link.



One CO-OP dying, another doing okay


Coordinated Health Mutual Inc., Ohio’s consumer operated and oriented plan (CO-OP), went into receivership to let the failing company wind down its operations over the next 60 days, the state’s Department of Insurance announced. Read this link.

The CO-OPs were created under the Affordable Care Act as a partial way to moving the nation to universal coverage once it became clear that the “public option” (in effect a Medicare plan mostly for those under age 65  and of moderate and low income) could not survive the lobbyists and legislators in Washington,

But at the  same time, HealthyCT, Connecticut’s CO-OP,  said it expects to be profitable by 2017’s first quarter, going against  a trend that has led to the collapse of at least a dozen CO-OPs.




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