People celebrate in front of the US Supreme Court after ruling was announced on the Affordable Care Act. June 25, 2015 in Washington, DC.
Photo by Mark Wilson/Getty Images
New Yorkers with policies issued by Health Republic (a non-profit insurer backed by the federal government) will be forced to seek out a new company when renewing coverage for 2016. According to the New York State Department of Financial Services, which oversees health coverage policies, Health Republic currently has the 2nd largest percentage (19%) of individual and family plans, as well as the highest number on the Small Business Health Options exchange with 35%. Policies for those customers will continue through December 31.
Although the most popular provider for those seeking coverage under the Affordable Care Act, Health Republic has been struggling financially and reported losing $53 million so far this year. In 2014, its losses reached $77.5 million. As a result, they have already withdrawn from markets in Allegheny, Hudson Valley and Utica/Watertown areas.
Health Republic was established under Obamacare to offer low-cost health unsurance and was designated by the Fed as a “Consumer Operated and Oriented Plan (CO-OP), and was the only on in the state of New York to receive federal loans of $265 million.
“Starting a new insurance company is a daunting task in any environment. But the challenges placed on us by the structure of the CO-OP program as enacted by a bitterly partisan Congress were simply too difficult to overcome,” Health Republic said in a statement.
For more information please review the letter posted to their customers at https://healthrepublicny.org/media/2599/letter-from-the-ceo.pdf
Note: Open enrollment for 2016 begins November 1.