Ohio Health Insurance CO-OP Goes Under

And then there were 10. Of the 23 health insurance co-ops set up through the Patient Protection and Affordable Care Act (PPACA), 13 have now failed. (BenefitsPRO)

The Ohio Department of Insurance announced that the co-op, known as InHealth Mutual, will be shut down, forcing its nearly 22,000 enrollees to find other plans within the next 60 days. (The Hill)

Under the receivership, policyholders must continue to pay their premiums, providers must honor their contracts for service, and vendors must work with the receiver, Ohio’s Lt. Gov. Mary Taylor, who is also the director of insurance, said the announcement. (FierceHealthPayer)

The Consumer Oriented and Operated Plan program was a part of the health-care law intended to foster a new breed of coverage that would serve as an alternative to traditional insurers. Proponents said the co-ops never had a fair chance to compete, with funding for them cut up front. That blow was followed by federal health officials’ decision last fall to pay just 12.5 percent of what the plans and other insurers were owed under a different part of the law designed to balance the risk of covering healthy patients vs. sick ones.(The Washington Post)