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发帖数: 29846 | 1 Tennessee to shut down Obamacare co-op
By Robert King • 10/14/15 2:44 PM
Tennessee will become the sixth state to shut down its Obamacare-funded
insurance co-op, announcing Wednesday it will not offer insurance coverage
in 2016.
The decision comes a few weeks after the federal government warned Tennessee
of financial problems with the co-op including failing to pay agents and
brokers and rising patient complaints. Tennessee's planned closure comes
less than a week after Kentucky decided to also close its doors after
financial troubles.
The decision means only 17 insurance co-ops are left. The co-ops were
created by the Affordable Care Act to offer more competition in the
insurance marketplace exchanges.
Related Story: http://www.washingtonexaminer.com/article/2574075
But the co-ops have been plagued by financial troubles since they went
online. Co-ops received more than $2 billion in federal funding as of
December 2014.
The Centers for Medicare and Medicaid Services wrote to the co-op called
Community Health Alliance in late September with concerns about its
financial viability.
The agency, which oversees the co-ops, noted that the Tennessee insurer had
issues processing enrollees and transactions due to problems with its
software vendor. The problems led to consumer complaints.
CMS was also concerned about the co-op's viability. The insurer has 29,773
members and planned to increase its membership, but it has since raised
rates by 44 percent.
The agency wondered what effect the rate hike would have on its financial
viability.
The problem is one experienced by several co-ops, which initially offered
lower premiums that drove people to enroll. However, the insurance startups
didn't have enough money to pay off medical claims, leading to financial
troubles.
The agency put the Tennessee co-op on an oversight plan that required the
insurer to submit monthly financial and complaint reports.
The co-op urged its customers to find a new plan through the next open
enrollment which begins Nov. 1. It will continue to offer health coverage
through Dec. 31. |
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