The Iowa insurance department has taken control of the consumer operated and oriented CoOportunity Health plan because the insurer has insufficient capital, reported The (Iowa City) Gazzette.
The plan, which has enrolled about 120,000 members in Iowa and Nebraska, has $17.2 million in cash and assets available. Although CoOportunity Health received about $146 million in federal funds, the insurer said an act by Congress "placed in jeopardy" its ability to spread out potential financial risk, which lowered its assets by about $60 million.
Iowa Insurance Commissioner Nick Gerhart will manage CoOportunity Health, working to correct existing problems and possibly develop a rehabilitation plan. He said all members who enrolled before Dec. 15 can continue receiving coverage, but anyone who signed up after Dec. 16 must choose a new insurer.
CoOportunity Health Vice President of Corporate Communications Dana McNeill said the insurer is cooperating fully with regulators and is taking steps to provide a smooth transition for its policyholders. "There are still a lot of details to be worked through," she told The Gazette.
To learn more:
- read The Gazette article