A cooperative health insurance company set up under rules created by the federal health insurance law has been ordered to quit writing policies in Nebraska.
State Insurance Director Bruce Ramge says the Nebraska Department of Insurance suspended CoOportunity Health after the Iowa Department of Insurance took over the cooperative.
“After they issued the order of rehabilitation, Nebraska suspended their certificate of authority to issue policies here,” Ramge tells Nebraska Radio Network affiliate KLIN.
CoOportunity Health formed as a nonprofit insurance cooperative under rules established by the Affordable Care Act. Not as much federal funds flowed to the cooperative as expected and its assets plummeted from $121.5 million to $17 million, according to court documents filed in Polk County, Iowa.
An Iowa judge appointed the Iowa Insurance Commissioner to assume management of the company. Iowa will attempt to rehabilitate it, but it might eventually have to liquidate its assets.
Ramge sees a comeback as unlikely.
“Time will tell, but I think it would require probably a merger or a purchase from another company that was eligible to do so,” Ramge says.