Portland, Ore.-based Oregon's Health Co-op went into receivership status Friday and will close its doors — leaving 23,000 uninsured — in light of $900,000 it owes under the Affordable Care Act's Risk Adjustment Program and other high medical loss ratios.
ACA's Risk Adjustment Program aims to temporarily level the financial playing field for payers absorbing newly insured, costlier members.
"As a result of this decision, we are working with the Division of Financial Regulation to develop a plan and begin taking steps to facilitate the transition of our membership to other insurers," Oregon's Health CEO Phil Jackson said.
Affected members will need to find a new plan by July 31, The Hill reported.
Eight of the original 23 co-ops created under the ACA remain. Last week, Wallingford, Conn.-based HealthyCT was placed under an order of supervision by the Connecticut Insurance Department, immediately prohibiting its sale or renewal of health plans and leaving 40,000 uninsured. Baltimore-based Evergreen Health Cooperative also announced last week it will have to shell out $24.2 million in risk adjustment fees, which represents more than a quarter of the payer's $85 million premium revenue this year.
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