On Monday, January 5, the Big "I" of Nebraska and Iowa led a delegation of agent leaders from both states in a meeting with Iowa Insurance Commissioner Nick Gerhart, to present our case against the Commissioner's suspension of payment of commissions on December 31, and discuss the issues agents are dealing with. IIAN CEO Carol McClelland, CAE, represented IIAN at the meeting in Des Moines.
While Commissioner Gerhart did not change his decision, he indicated that if CoOportunity receives the $125-$150 million due from the federal government due to the risk corridor, then there should be enough funding pay commissions. Since it is questionable that this funding will come through, it is extremely important for agents to keep good records in the event the company goes into liquidation.
Commissioner Gerhart explained how complicated and difficult the financial situation is, and gave the very strong impression that CoOportunity is headed for liquidation - perhaps as early as January 31. He stated that CoOportunity Health "is a victim of its own success . . . there is nothing to rehabilitate . . . people need to find a new carrier as soon as possible."
Both Gerhart and Nebraska Insurance Director Bruce Ramge are now recommending that CoOportunity policyholders move their health coverage as soon as possible.
Other meeting notes:
- Claims: Once CoOportunity Health is in bankruptcy, the state guarantee fund will protect insureds up to $500,000 per person. If there are claims above that, there is no guarantee they will be covered.
- Tax Credits: For January, CoOportunity Health may still be a qualified QHP that should be able to receive tax credits for plans sold on the marketplace.If and when the company is liquidated, the Iowa Commissioner wants to make it effective at a future month end to make sure people's tax credits for that month are not jeopardized. The IID is still trying to confirm if a special enrollment period will be triggered when the company goes into liquidation, which would allow consumers to switch to another insurance company outside of open enrollment.
- Provider Issues: Providers have already started refusing to schedule procedures for people with CoOportunity Health. If you have a client with this issue, contact Becky Blum of the Iowa Insurance Division - becky.blum@iid.iowa.gov, 515-281-3059.
Read the latest Iowa and Nebraska Insurance regulator guidance for agents and FAQ's for consumers on IIAN's CoOportunity Health update page:
IIAN will share more information as it becomes available. Call Carol McClelland, CAE, IIAN CEO with questions - 1-800-377-3985, 402-476-2951.
Editor's Note: Thanks to IIAN's endorsed market partner - OCI Services, Inc. of Omaha - for providing the above summary of meeting notes.
