Kentucky Health Cooperative, a nonprofit insurance company formed under the Affordable Care Act, will not offer health insurance plans on Kentucky's health insurance marketplace when open enrollment for 2016 coverage begins Nov. 1.
Earlier this month, CMS said insurers would receive $362 million in risk corridor payments for 2014, or 12.6 percent of the $2.87 billion requested. Kentucky Health Cooperative relied on the risk corridor payments and shutting down was unavoidable without the funds, according to Glenn Jennings, interim CEO of Kentucky Health Cooperative.
"It is with sadness that we announce this decision," said Mr. Jennings. "The very difficult choice was made after much deliberation. If there were a way to avoid it and simultaneously do right by the members, providers and all others that we serve, we would do so."
Kentucky Health Cooperative isn't the only co-op to face financial challenges. In February, CoOportunity Health, which served people in Iowa and Nebraska, shut down. In July, Louisiana Health Cooperative said it will shut down by Dec. 31. New York's co-op, the largest in the nation, closed last month.
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