New York Health Co-op Shut Down by State and Federal Regulators
One of the least expensive insurers on the New York health insurance exchange will be gone by the end of the year. Federal and state regulators intervened to shut down Health Republic Insurance of New York. With about 200,000 enrollees, it’s the fourth and also the largest co-op to get the ax this year.
Spokesperson for the New York State Department of Financial Services, Matt Anderson says the co-op was on the road to insolvency, "The premiums that they charged simply were too low and didn’t ultimately cover their expenses."
Michael Capaldo is a board member at the New York Association of Health Underwriters. He doesn’t see this as a good sign for the new approach to insurance that started with seed funding from the federal government.
"It is the handwriting on the wall, unless you have an extraordinarily supportive and unique marketplace. There are one or two co-ops (I believe) that are thriving," says Capaldo.
There are about two dozen health co-ops in the country.
New York customers will need to find new policies before their coverage ends at the end of the year.