A statement from the Iowa Insurance Division to agents and brokers paints a foreboding picture for CoOpportunity Health, which is now under state control due to insufficient funding. The insurance division encourages individuals and groups to select new carriers as soon as possible, or no later than Feb. 15; if they do not, they may not be able to choose another carrier until the fall 2015 open enrollment period.
The statement also points out that, should CoOpportunity Health move from rehabilitation to liquidation status, laws in Iowa and neighboring Nebraska place a $500,000 limit on medical and pharmacy claims. Claims in excess of that amount are a member's responsibility. In addition, group business would be terminated 45 days after the liquidation order is issued. Statement