Oregon will take over its troubled state health insurance co-opto wind down its business after the sudden collapse of the organization's finances.
The Division of Financial Regulation of the Oregon Departmentof Consumer and Business Services will file a petition to place in receivership toliquidate its assets and help connect policyholders to new plans, the departmentsaid in a release.
The co-op had 20,600 policyholders as of March 31. The co-op'splans will end July 31. Beginning July 11, individual and business customers mustfind new insurance through a special enrollment period for coverage that will takeeffect Aug. 1.
The organization lost $18.4 million in 2015, mainly due to medicalclaims for individual policies. The co-op hoped to receive $5 million from the federalrisk adjustment program. However, the Centers for Medicare and Medicaid Servicesinformed the insurer that it owed $900,000 to the program, which the AffordableCare Act established to balance costs among insurers according to the health risksof its membership.
The co-op is the latest casualty among the remaining nonprofitinsurers formed to offer coverage under the ACA, leading to growing momentum fora legal challenge to therisk adjustment program.