State regulators have concluded that “the financial health of Connecticut’s nonprofit health care co-op [is] unstable.” So, about 40,000 members will lose their health coverage on January 1, 2017.
State officials issued an order of supervision to HealthyCT on Tuesday “after it became clear a new federal requirement for the provider to pay $13.4 million would leave its finances in disarray.” The co-op is required to pay that amount as part of the Affordable Care Act’s risk corridor program.
HealthyCT members will continue to be covered through the end of 2016, but they must select new plans for coverage starting on January 1, 2017.
Meanwhile, the collapse of Utah’s nonprofit insurance cooperative is leaving Utah hospitals with millions in unpaid claims.
Arches Mutual Insurance Co. owes $33 million that the Utah Department of Insurance says will likely remain unpaid until 2017.