The non-profit health insurance company was the largest private provider on Kynect, the state’s health insurance exchange, serving 51,000 Kentuckians.
FierceHealthPayer said: “The CO-OP’s decision to close came after it faced considerable financial struggles and then learned it would not receive federal risk corridor funding on which the organization had relied.”
The federal government recently announced that it will be able to pay only 12.6 percent of what it owes insurers through the risk corridor program, which collects funds from insurers that are more successful on the exchanges and distributes those payments to less successful insurers to lessen the financial risk associated with operating on the exchanges.
