The following is from Dr. Christine Gilroy of Colorado Health OP:
“I am writing to explain what you will see in the news in the next few days.
The feds have quietly been shutting down co-ops in other states over the last 3 months. New York and Nevada were most recent. I am speaking now, as they have since issued gag orders to these co-ops.
The reason these co-ops were closed was that they were successful in the Individual Market. New York had 200,000 members.
Start up insurance requires 3 years to build Risk Based Capital. Starting Co-ops required an initial start-up loan, the feds promised second year funds to Risk Based Capital, which they reneged on in the CROMNIBUS budget of 12/9/14.
They told us at the same time we could not accept Venture Capital loans or Angel Investor dollars that help other start-ups through their initial capitalization period.
The Feds also promised to support the new individual market for 2 years through Reinsurance of the Risk Corridors. This meant that insurance companies would be incentivized to take all comers through the exchanges, and more insurance companies would participate to dilute the risk.
Today they broke their promise to Colorado, and denied us the Risk Corridor funds we were promised. They offered 12%. This affects every company that participated in the individual exchanges, not just Colorado HealthOP. Colorado HealthOP only needed 35% risk payment, and would have required no further infusions of federal money to be profitable in 2016, and are currently on track to pay back our loans — with interest –before they were due.
Short-sighted partisan politics are harming the people of Colorado.
The ACA was successful in lowering individual health premiums throughout Colorado. The Colorado HealthOP is part of that.
Please, call your Congresspeople. 80,000 Coloradans rely on Colorado HealthOP to provide access to affordable care. Let’s make sure they keep their promises to the people of this state.