Early this month the Evergreen Health Cooperative announced that they will be withdrawing from the Affordable Care Act exchanges in 2017. The company will not be offering or renewing individual health policies next year.
The Maryland Insurance Commisioner, Al Redmer Jr. stated that “After many months of working closely with Evergreen management, leadership at the Centers for Medicare and Medicaid Services, and outside investors to find a workable solution, we have run out of time to meet the deadline for a January 1 effective date. We remain committed to a viable, competitive insurance industry in Maryland.”
In 2012, the co-op was granted $65.5 million in loans funded by the taxpayers, however the recent decision made by Evergreen will force 6,000, who relied on the services provided, to automatically enroll in new plans.
There have been 18 co-ops that have failed, out of the 23 created by Obamacare. Along with Evergreen, some of the other failed co-ops were from New Jersey, Illinois, Connecticut, Arizona, Colorado, Kentucky, Michigan, Nevada, New York, Ohio, South Carolina, Tennessee, Louisiana, Utah, as well as a co-op that served both Iowa and Nebraska, and two that served Oregon.
Most of the five remaining co-ops are also seeing losses, with the Community Health Options in Maine, reported to have a 4.7 percent decrease in membership since the end of October. Their co-op had a net loss of 31.3 percent, which was worse then what was initially expected.
A $735,375 loss was reported during a nine month span ending on September 30th by Minuteman Health, Inc., a co-op serving both Massachusetts and New Hampshire.
The Common Ground Health Care Cooperative, the co-op serving Wisconsin, lost $16.9 million in the first half of 2016, having to acquire additional funds to stay afloat until 2017 when they will sell their plans.
Kevin Counihan, a top official for the Centers for Medicare and Medicaid Services, told lawmakers that the few co-ops remaining were on corrective action plans; however, he could not guarantee that these remaining co-ops would survive for very much longer.
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