New York state is investigating Health Republic, the New York-based nonprofit health insurance co-op created under the Affordable Care Act, for alleged "inaccurate" financial representations to the government, according to The Hill.
Health Republic is one of 12 out of the original 23 ACA co-ops that have shut down or are planning to because of financial problems.
Now, the New York Department of Financial Services is probing Health Republic's financial reporting, according to the report.
"NYDFS investigators are collecting and reviewing evidence relating to Health Republic's substantial underreporting to NYDFS of its financial obligations," the state's financial services department said in a statement. "Among other issues, the investigation will examine the causes of the inaccurate representations to NYDFS regarding the company's financial condition."
The co-op maintains it has been transparent with its finances. "We have been working closely and transparently with our state and federal regulators since our inception, including monthly regulatory filings and numerous meetings to discuss potential avenues to improve our financial position," Health Republic said in a statement, according to The Hill.
The state has announced steps to help the roughly 200,000 Health Republic customers who will be losing coverage at the end of November.