"Iowa Commissioner Nick Gerhart today filed a petition in Polk County District Court seeking the liquidation of CoOportunity Health, the nonprofit health insurer serving Iowa and Nebraska residents. Gerhart, who obtained a court order placing the company into rehabilitation on December 23, 2014, concluded that further efforts to rehabilitate the company would be futile.
CoOportunity Health was approved and funded as a Consumer Operated and Oriented Plan by the Centers for Medicare and Medicaid Services (CMS). The liquidation petition notes thatCoOportunity Health's liabilities exceed its assets. Most of its assets consist of accounts receivable from CMS, and will not be received until late 2015.
A hearing on the petition will be scheduled in February.
The number one priority continues to be protecting Iowans and Nebraskans. CommissionerGerhart urges Iowans and Nebraskans, with insurance from CoOportunity Health to obtain other coverage now. Consumers are urged to contact healthcare.gov, the Marketplace call center at 1-800-706-7893, work with their agents or brokers, or get assistance from a navigator or consumer assistance counselor. After February 15, 2015, all consumers must call the Marketplace call center at 1-800-706-7893 to obtain new coverage and continue to receive any advance premium tax credits or cost sharing reductions for which they are eligible. There will be a special enrollment period March 1 through April 29, 2015, however, to avoid having a gap in financial assistance, individuals must enroll in a new health plan by February 28, 2015.
During liquidation, Gerhart will wind down the company's operations under Court supervision, and health insurance guaranty associations in Iowa and Nebraska will assume responsibility for paying the claims of CoOportunity's healthcare providers."
In a January 23 release, Gerhart said an order to liquidate the company should take effect on February 28, 2015.
IIAN will advise actions CoOportunity agents should take and procedures for notifying policyholders after more information becomes available.
Call Carol McClelland, CAE, IIAN CEO with questions - 1-800-377-3985, 402-476-2951.
