HealthyCT, Inc. has joined the burgeoning ranks of struggling Consumer Operated and Oriented Plans (CO-OPs), as the Connecticut Department of Insurance (CID) ordered it placed under administrative supervision due to its financial status. The order was issued and effective July 1, and CID issued an explanatory press release on July 5.
HealthyCT had projected profits in 2017 but on June 30, the federal government determined that the CO-OP owes nearly $13.4 million in payments under the Risk Adjustment program, one of the health insurance premium stabilization programs established by the Affordable Care Act. CID determined that the payment obligation is large enough to alter HealthyCT's overall financial outlook.
We had previously alerted providers and other potential creditors about the need to vigorously pursue payments from CO-OPs to avoid the risks associated with their possible insolvency.
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