Obamacare Coops, Almost Half Shut Down
Almost half of the Obamacare health insurance coops are shutting down due to not receiving certain subsidies needed to stay afloat. 11 of the 23 coops are shutting down, and will affect its enrollees who need to find a new plan for 2016, as well as, it lessens competition in the areas they were created.
What is a Health Insurance Coop?
Just like a dairy coop or a electric coop used in farming communities for years, a non-profit health insurance cooperative is owned by the same people it insures. For many years, health insurance coops have been around, but 23 were established to create competition for Affordable Care Act exchange and off-exchange plans. These ACA coops were designed to help in underrepresented areas.
Who is Affected by ACA Coop Closures?
Over 500,000 people are affected, and this number may grow as more coops may bow out in the next few weeks. Some of the coop closures are in Arizona, Colorado, Kentucky, New York, Oregon, and Tennessee (complete list of coops has not been released; not all coops in these states are closing). If you are in a coop that is closing you will need to find a new Bronze, Silver, Gold, or Platinum ACA plan for 2016.
Since, in less than a week coop closures went from 8 to 11, you’ll want to check with your coop if they plan on continue enrolling people for 2016. If they do not, you’ll want to get an ACA health insurance quote or, if you know the plan you want, apply for an Obamacare on or off exchange plan.
To speak to an independent Medicoverage agent call 800-930-7956.