Things are so bad at a taxpayer-funded Obamacare insurer in New York that it has to shut down early, forcing thousands of consumers to get a new plan earlier than expected.
New York regulators shut down Health Republic of New York in September. The co-op said it won't offer plans in 2016, but more than 200,000 people would continue to have coverage until Dec. 31.
Now those people have until Nov. 30 to find a new plan or risk losing coverage.
The reason is the insurance cooperative, one of 23 funded by the federal government to spur more competition on Obamacare's insurance marketplaces, was worse off than previously thought.
"The company's financial condition is substantially worse than the company previously reported in its filings to the New York State Department of Financial Services," the department said Friday.
It isn't clear how much worse things were for the insurer. The department declined to comment when asked for further information.
The insurer lost about $52 million in the first six months of 2015, according to a September report from the Wall Street Journal. That is in addition to the $77.5 million it lost last year.
The decision means that those who bought a Health Republic plan must choose a new plan for the remainder of 2015 on or before Nov. 15, the department said.
Several Obamacare co-ops have had to shut down due to financial problems. Ten, including New York's, have decided to not issue plans in 2016.
The reasons vary, but several co-ops said a big reason was a lack of federal funding from a program intended to mitigate insurance losses. It is not clear what part the lack of funding played in Health Republic's financial woes.
Obamacare open enrollment starts Sunday and runs until Jan. 31.