Health coop closes, 51,000 need new insurance
The Kentucky Health Cooperative, a nonprofit, government-subsidized insurance group aimed at offering consumers more choices in health coverage under the Affordable Care Act, will stop offering health plans at the end of this year.
Some 51,000 people with health coverage through the program will have to find other coverage for next year when open enrollment for health insurance opens Nov. 1, officials announced Friday.
All consumers will be able to shop for new coverage Nov. 1 through Jan. 31 on the state health exchange, kynect.
The state Cabinet for Health and Family Services said the state Department of Insurance will be working with customers to ensure coverage continues through this year when most of the cooperative policies expire.
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Health cooperatives were authorized under the federal health law, also known as Obamacare, to give consumers more choices in states with few options for people to purchase health coverage. They were subsidized by the federal government but have struggled in several states that opted to create them.
Kentucky's had sustained heavy losses but was working to reverse the trend after nearly two years of operations, said Glenn Jennings, interim CEO of the cooperative.
"It is with sadness that we announce this decision," said Jennings in a press release Friday. "In plainest language, things have come up short of where they need to be."
Federal officials with the U.S. Centers for Medicare and Medicaid Services (CMS) said Friday they realized that not all cooperatives, as start-up operations, would succeed in the health marketplace.
“CMS’ priority is to make sure that marketplace customers have access to quality, affordable coverage through the marketplace," said a statement from the federal agency. "We are working with Kentucky officials to do everything possible to make sure consumers stay covered.”
Kentucky's senior Sen. Mitch McConnell, a Republican harshly critical of the health law, yesterday called it an example of the failure of Obamacare.
"This is the latest in a string of broken promises with real consequences for the people of Kentucky," he said in a statement.
But Gov. Steve Beshear, who enacted Kentucky's health exchange, said in a statement Friday that consumers will have more health insurance choices than ever for next year with seven insurance companies offering plans.
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"We are near the beginning of another open enrollment period when Kentuckians can find more choices and affordable prices by shopping in kynect," Beshear said.
Beshear said Kentucky is the "hands-down national leader" in helping people access health care.
People with policies from the cooperative can get more information by calling the state Insurance Department at 800-595-6053.
Reporter Deborah Yetter can be reached at (502) 582-4228 or at dyetter@courier-journal.com.