As I was preparing to do my research this morning, I saw a story in my news feed titled Health Republic Insurance of New York Co-op is closing. Once again just as some of the others that have reported closing earlier this year, they are not self-sustaining. They were opened with federal seed money yet it seems as if they were ill-prepared to be operating on a long term basis.
What happens to the people who have purchased health insurance through these Co-ops? They are being notified that their policies will remain in effect for a certain period of time, however, they need to begin shopping the other companies in order to ensure they have a plan in place. I can see Sally now. She’s been paying her insurance and one or two doctors visits this year. She thinks everything is going along just fine. She’s had insurance for seven months and all of a sudden, she gets a letter in the mail notifying her, that her policy is being cancelled at the end of the year.
(1) What are comparable options?
(2) Will her doctor even be under the new plans?
(3) Will it costs her more for the new plan?
(4) What would happen if she is fed up with this entire situation and decides to go without?
I like to look at the big picture. There are so many factors that are in play when it comes to health insurance sometimes it makes people mad. Mad enough to where they just want to end the policy they have and take their chances.
How many other Co-ops have closed? I’m so glad you asked. Earlier this year, the Co-Op in Iowa, Nebraska, Nevada and also Louisiana have closed or will be closed by the end of the year. From some research I did, it didn’t appear that any of the Co-ops were self-sustaining. Hawaii was supposed to be closing; however, the government came back and said they would give them a grant.
If you are reading this and went through a local state exchange, you should contact them and find out what is happening with them. This is for your own benefit.