Nick Gerhart, the Iowa insurance commissioner, has posted a copy of the liquidation petition for CoOportunity Health on the Web.
CoOportunity is one of the new nonprofit, member-owned Consumer Operated and Oriented Plan (CO-OP) insurers created by the Patient Protection and Affordable Care Act (PPACA).
Gerhart put the CO-OP under supervision in December, warned about the possible effects of a plan liquidation around the same time, and last week announced his intent to file a petition for liquidation.
The petition was filed last week in a state court in Polk County, Iowa.
The current general individual coverage open enrollment period started Nov. 15 and is set to end Feb. 15. CoOportunity enrollees can enroll in new coverage through the open enrollment period by Feb. 15. They can also enroll through a special enrollment period that will last from March 1 through April 29. To avoid any gap in financial assistance, affected consumers need to enroll in a new QHP by Feb. 28, officials say in an announcement about the petition.
A look at the petition can also give outsiders a glimpse of what CoOportunity’s finances were like and how it was interacting with the PPACA “three R’s” risk-management programs — a temporary reinsurance program, a temporary risk corridors program and a permanent risk-adjustment program.
In 2011, federal officials estimated about 40 percent of the new PPACA CO-OPs they were helping to start would eventually fail.
To learn more about what’s in the petition, read on.
1. CoOportunity’s obligations far exceed its liquid assets.
The company had only $13 million in cash on invested assets on Dec. 31, down from $28 million on Nov. 30.
The company has “liabilities including incurred but not reported claims (IBNR) of at least $150 million,” officials say in the petition.