January 29, 2015 - Petition for Liquidation of CoOportunity Health
The Iowa Insurance Commissioner, as the court appointed rehabilitator for CoOportunity Health, has determined that rehabilitation of CoOportunity Health is not possible and filed a petition in Polk County District Court seeking the liquidation of CoOportunity Health. A hearing on the petition will be scheduled in February and an order to liquidate the company should take effect on February 28, 2015.
There is no expectation for additional cash inflow until the second half of 2015 and medical claims currently exceed cash on hand. This action is being taken to protect Iowans and Nebraskans to ensure that their medical providers and claims are paid by the state Guaranty Associations in Iowa and Nebraska.
Iowans receiving advance premium tax credits to help pay for their insurance need to find other coverage by March 1, 2015. After March 1st, CoOportunity will no longer be a qualified health plan and advanced premium tax credits and cost sharing subsidies to CoOportunity Health enrollees will stop.
In announcing this decision, Commissioner Gerhart strongly recommends that individuals obtain other coverage as soon as possible. Open enrollment continues until February 15, 2015. Employers with coverage in the group market need to work with their agent to obtain other coverage as soon as possible. Upon liquidation, groups will have 30-45 days to secure coverage.
Order of Rehabilitation Submitted December 23, 2014
On December 23, 2014, the Iowa Insurance Commissioner submitted a petition for an Order of Rehabilitation of CoOportunity Health. The Polk County District Court issued an order appointing Insurance Commissioner Nick Gerhart as rehabilitator of CoOportunity Health. Based on this action, the Nebraska Department of Insurance suspended the Certificate of Authority for CoOportunity Health.
The Iowa Commissioner took his rehabilitation action due to financial concerns arising from insufficient capitalization, the lack of availability of additional capital from the Center for Medicare and Medicaid Services, and the delay of federal payments for risk mitigation programs until the second half of 2015. These issues, plus higher than anticipated healthcare utilization, have caused cash flow problems. The Commissioner has assigned a team to assess the liquidity issues and develop a plan which manages the available resources.
CoOportunity Health is no longer offering health plans for individuals on the Health Insurance Marketplace in Iowa and Nebraska (HealthCare.gov) or the SHOP Marketplace for small employers in Iowa and Nebraska for 2015.
CoOportunity Health is also not accepting new enrollment off Marketplace for individuals or employer groups in Iowa and Nebraska.
Information for members, employer groups, brokers/agents, and providers is available on the Iowa Insurance Division website or the Nebraska Department of Insurance website. Here are links to specific documents:
Petition for Rehabilitation Order, filed 12/23/2014
Order for Rehabilitation, filed 12/23/2014
Frequently Asked Questions for Policyholders, updated 12/31/2014
Notice to Enrollees and Providers, published 12/31/2014
Producer Guidance, published 12/31/2014
Guidance for Agents & Brokers on Current CoOportunity Health Business, published 1/7/2015
Guidance to CoOportunity Healthcare Providers, published 1/7/2015
Liquidation Order Press Release, published 1/23/2015
CoOportunity Health Liquidation Frequently Asked Questions For Individuals, published 1/23/2015
CoOportunity Health Liquidation Frequently Asked Questions For Small Groups, published 1/23/2015
CoOportunity Health Liquidation General Information, published 1/23/2015
Deductible Credit Reports, published 1/23/2015
IRS Guidance - Small Business Tax Credit Transitional Relief, published 1/23/2015
Commissioner Files Petition for Liquidation of CoOportunity Health, published 1/29/2015
Petition for Order of Liquidation, published 1/29/2015