Health Republic’s finances ‘substantially worse’ than reported, policies to end Nov 30.
Health Republic Insurance of New York, the collapsing insurance company that is creating headaches for hundreds of thousands of New Yorkers, misled state and federal officials about its finances, and will not be able to remain in business through the end of the year as originally hoped.
The more than 200,000 customers insured with the co-op will lose their coverage Dec. 1, and must find a new plan by mid-November, according to the state and federal government. Health Republic insures about 20 percent of the state's individual market.
The company last month announced it would unwind its business after losing $130 million during its first 18 months. It is one of 10 co-ops to fail nationwide amid broader concern the business model for most of these companies, which were created by the Affordable Care Act and seeded with billions in federal funding, is unsustainable.
The plan was for Health Republic to make it through the end of the year. As recently as last week, company officials said there was enough in cash in reserve. But that apparently wasn't true.
Read the rest at: http://www.capitalnewyork.com/article/albany/2015/10/8581360/health-republics-finances-substantially-worse-reported
