CoOportunity Health to be liquidated

Iowa is pulling the plug on an experiment to have a consumer-owned cooperative sell health insurance.

The state's insurance commissioner announced Friday that he would seek liquidation of CoOportunity Health, a carrier formed with $146 million in federal grants and loans under the Affordable Care Act. CoOportunity, which was one of 23 such health insurance cooperatives nationally, covered a total of nearly 120,000 people in Iowa and Nebraska before hitting financial shoals late last year. Iowa Insurance Commissioner Nick Gerhart took over the faltering carrier in late December.

In announcing his decision to seek liquidation, Gerhart said the company has less cash on hand than medical claims to cover for members. He said there was no expected infusion of new money until the second half of 2015. Special insurance-guarantee funds will pay outstanding claims, he said, but any remaining customers should switch to other carriers as soon as possible.

"Our number one priority is to the Iowans and Nebraskans impacted by this event. We want to ensure a seamless transition as possible to other coverage and avoid any gaps in coverage," Gerhart wrote in a news release. Gerhart said he would seek a court order next week to liquidate the company. The order should take effect Feb. 28, he said.

Read the rest at:http://www.desmoinesregister.com/story/news/health/2015/01/23/iowa-liquidating-cooportunity-health/22223393/