Morning Briefing
Summaries of health policy coverage from major news organizations
Most Recent Closing Of Insurance Co-Op Leaves Some Customers In Illinois Facing Higher Costs
The Illinois Insurance Department moved Tuesday to shut down Land of Lincoln because of its unstable financial health, leaving about 49,000 policyholders in a lurch. They will lose coverage in the coming months, but neither regulators nor the company have said exactly when. Policyholders will be able to buy insurance from a different carrier to cover them for the rest of 2016, according to the state Insurance Department. But switching plans is going to cost them. The co-pays and deductibles enrollees have been paying since January will not transfer to new plans. A new plan will reset deductibles and out-of-pocket maximums paid by consumers. (Sachdev, 7/13)
New failures are piling up among the member-run health insurance co-ops carrying out one of the Affordable Care Act's most idealistic goals, leaving just seven remaining when the health law's fourth enrollment season starts in the fall. There were 23 in 2014. The public knows them as co-ops. They鈥檙e officially called consumer operated and oriented plans in the health law. Eleven are still in business, but four in Oregon, Ohio, Connecticut and Illinois will disappear by fall due to financial insolvency. (Galewitz, 7/13)
A top Centers for Medicare and Medicaid Services official defended the health insurance co-ops created under the Affordable Care Act Wednesday, after four more of the nonprofit insurers announced they would take steps to wind down in recent weeks. Kevin Counihan, the CEO of HealthCare.Gov, told a subcommittee of the House Committee on Oversight and Government Reforms that the co-ops have spurred innovation within the health insurance marketplace and given consumers more opportunities. But Republicans on the panel railed against the program, as about two-thirds of the co-ops have now announced steps to close down. (McIntire, 7/13)
