February 28, 2015 - Notice of Liquidation for CoOportunity Health

On February 24, 2015, the Polk County, Iowa District Court ordered CoOportunity Health into liquidation effective February 28, 2015. The Liquidation Order appointed Nick Gerhart, Insurance Commissioner of the State of Iowa, as Liquidator of CoOportunity Health and authorized him to take possession of CoOportunity Health's assets and to liquidate its business. The Commissioner has delegated his authority as Liquidator to the Special Deputy Liquidator, Dan Watkins.

Also on February 28, 2015, the life and health insurance guaranty associations in Iowa and Nebraska, pursuant to state statutes, became responsible for covering eligible healthcare claims under CoOportunity Health insurance policies, subject to guaranty association statutory limits, terms and conditions of coverage.

Please see these documents pertaining to the liquidation:

Final Order of Liquidation

CoOportunity Health Liquidation Frequently Asked Questions

Guaranty Associations Notice of Liquidation

Guaranty Associations Cancellation Notice

Notice of Guaranty Association Privacy Procedures

CoOportunity Health Proof of Claim Form

Liquidation Notice to Agents

Liquidation Notice to Providers

Liquidation Notice

Group Coverage Termination Dates

Coverage for groups with an April 1, 2015, renewal date will terminate with CoOportunity Health on March 31, 2015.

CoOportunity Health coverage for all other groups will terminate on April 14, 2015.

Individual Coverage Termination Date

All individual CoOportunity Health policies will terminate on August 31, 2015.

In addition, now that CoOportunity Health has been placed into liquidation, it has lost its Qualified Health Plan (QHP) status. This means that starting March 1, policyholders will no longer receive advance premium tax credits (APTCs) and they will be responsible for paying their entire premium if they retain their CoOportunity Health policy.

Also, in liquidation, the Cost Share Reduction (CSR) plans are no longer valid. All policyholders who had enrolled in a CSR plan have been moved to a Silver plan and will be responsible for paying the deductible and out-of-pocket maximum for a Silver plan rather than the reduced deductible and out-of-pocket amounts.

Special Enrollment Period

Individual purchasers are eligible for a Special Enrollment Period to purchase new health insurance coverage. Wednesday, April 29, 2015, is the last day of this Special Enrollment Period.

To enroll in Marketplace coverage during the Special Enrollment Period, please call the Marketplace at 1.800.318.2596.

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.

Informational Links

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





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