Policyholders of Oregon’s Health Co-op, which is in receivership, have about two weeks to find new health plans.
The good news for individual members of the Co-op is that they can get credit for any money they have spent toward their deductibles and out-of-pocket maximums.
All CO-OP plans will end on Sunday, July 31. The state Department of Consumer and Business Services Division of Financial Regulation is winding down the carrier’s operations and liquidating the company because it ran into dire financial straits.
“It is unusual for plans to be canceled in the middle of the year, so we have been working hard and thinking creatively about how to better this situation for consumers,” DCBS Director Patrick Allen said in a written statement. “Although Co-op members will have to switch plans, they will not lose the money they already have paid into their plan for deductibles and other out-of-pocket expenses.”
Other Oregon insurers have agreed to honor money that Co-op members have already spent, so they don’t have to start over on new plans.
Allen encouraged employer groups to work with their agent to find a new plan. They may have to start over on deductibles and out-of-pocket costs. The CO-OP’s 12,000 individual members can sign up through HealthCare.gov for a new plan or buy one directly from another insurer. They can only receive tax credits unless they go through the federal platform.
Date: July 19, 2016