Ohio’s Obamacare plan has closed up shop, making 13 out of 23 consumer-oriented-and-operated plans to shutter.
InHealth Mutual in Ohio will shut down and will force more than 20,000 people to choose new plans. They will have 60 days to find a new plan. Ohio’s insurance regulator said Thursday that it had to take control of the co-op because of major losses.
The Ohio co-op is the first one this year to close. Last year, 12 of the 23 taxpayer-funded plans shut down due to mounting financial losses and a lack of federal funding.
Including InHealth, the federal government has spent $1.3 billion to set up the co-ops, which were created to offer more competition on Obamacare’s exchanges.
The co-op closure comes as major insurers have started to flee certain Obamacare markets. UnitedHealth announced earlier this year that it will exit a majority of the states in which it offers Obamacare plans, and Humana has announced it will leave some markets.
Other major insurers, most notably Anthem Blue Cross/Blue Shield, have said they remain committed to Obamacare.
Republicans have criticized the co-op closures and the loss of taxpayer funding and impact on plan holders. The latest closure was no exception.
“It is unacceptable. My constituents deserve certainty, not plans that crumble and implode under their own weight,” said Rep. Pat Tiberi, R-Ohio, in a statement.
