The Illinois Department of Insurance has started the process of putting Land of Lincoln Mutual Health Insurance Co. in rehabilitation, officials announced earlier this week.
Organizers used loans from the Affordable Care Act Consumer Operated and Oriented Plan program to start the nonprofit, member-owned carrier. The carrier has about 49,000 enrollees, officials said.
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Anne Melissa Dowling, the department’s acting director, said she has asked the state attorney general to file a rehabilitation petition in state court.
The department has not said how long it expects the CO-OP to continue to operate.
If and when the court enters a rehabilitation order, the CO-OP “will temporarily continue to operate under the director’s supervision,” officials said.
The CO-OP will continue to pay claims while the director works with the Centers for Medicare & Medicaid Services, the federal agency in charge of the CO-OP program, to establish a 60-day special enrollment period, so that enrollees can find new coverage, officials said.
The announcement appears to indicate that the CO-OP may close before Dec. 31.