Another taxpayer-funded insurer for Obamacare will close next year, leaving only six.
New Jersey’s consumer oriented and operated healthcare plan, Health Republic Insurance, announced late Monday it would not offer plans in 2017. The departure means that 17 out of the 23 Obamacare co-ops have shut down after spending $1.8 billion in taxpayer funding.
The co-ops were meant to provide more competition on Obamacare’s exchanges. However, the startups have had a rough time staying viable, especially as federal funding intended to help mitigate losses hasn’t met expectations.
New Jersey’s insurance regulator said it agreed to place the co-op under rehabilitation, due to its “deteriorating financial condition.”
The action means that all 26,000 customers will have to find a new plan at the beginning of the year.
Republicans quickly pounced on the latest co-op failure, tying the collapse to broader problems with the law.
“A lot of folks continue to have their healthcare disrupted by the administration’s co-op mess,” said Rep. Fred Upton, R-Mich., chairman of the House Energy and Commerce Committee.
The Centers for Medicare and Medicaid Services, which oversees the co-ops, noted that current policy members will be able to shop for a new plan when open enrollment starts in November.
“CMS and state departments of insurance, which are the primary regulators, are working closely with co-ops and state departmentsof insurance to provide the best outcomes for consumers and taxpayers,” said spokesman Aaron Albright.
