Only a third of ObamaCare co-ops are still in operation after two more co-ops announced they were closing their doors in the past week.
Connecticut’s co-op, HealthyCT, was placed under an immediate order of supervision on July 5 after being forced to pay $13.4 million for the Affordable Care Act’s risk adjustment program.
The Centers for Medicare and Medicaid Services initially awarded HealthyCT $75.8 million in June 2012, then awarded it $3.8 million in November 2013 and $48.4 million in September 2014.
“It became evident that this risk adjustment mandate would put the company under significant financial strain,” said Katharine Wade, Connecticut’s insurance manager. “This order of supervision provides for an orderly run-off of the company’s claim payment under close regulatory oversight.”
Three days later, the Oregon Department of Consumer and Business Services announced it would place Oregon’s Health Co-Op in receivership and liquidate the company’s assets. The co-op lost $18.4 million in 2015 due to medical claims and individual policies and owes $900,000 to pay for Obamacare’s risk adjustment program. The co-op was awarded a total of $56.7 million from the Centers for Medicare and Medicaid Services.
“We understand changing plans in the middle of the year will be difficult for Oregonians, but this action was necessary given the sudden deterioration of the company’s financial position,” said Patrick Allen, director of the department. “Unfortunately, as a startup, Oregon’s Health CO-OP is not in a position to sustain these losses while meeting its obligations to policyholders.”