Meritus, Arizona's Co-op Also Failing

[Ann H]

Yep, news is it's happening to our co-op here in Arizona, Meritus.

Meritus placed under supervision, refuses, and is pulled from the Exchange - Phoenix Business Journal

Just two days before open enrollment for the Health Insurance Marketplace begins Nov. 1, the U.S. Centers for Medicare and Medicaid has removed Meritus Health Partners from the Marketplace.

Today, the Arizona Department of Insurance filed an Order for Supervision to place Meritus Health Partners and Meritus Mutual Health Partners into supervision. Meritus declined to consent to the Order for Supervision, according to the Arizona Department of Insurance.

Meritus will honor their individual and group health insurance plans through the end of 2015, but may not issue new policies or renew existing policies.
That means 55,000 Meritus policyholders must shop for a new plan for 2016 coverage.

Teresa Ferrin, owner of Kierland Life and Health Insurance in Scottsdale, said consumers really should call a broker, because it’s very confusing to maneuver alone.

She said there are 69 plans available on the HealthCare.gov web site.
“An agent can help you with service, claims and competitive pricing, and there’s no extra cost involved,” she said.

Meritus received $93.3 million in start-up and solvency loans from CMS under the Affordable Care Act. It has not yet made a profit and has lost more than $78 million since its inception in 2012.

CMS is working with Arizona Department of Insurance officials to make sure consumers stay covered, said Aaron Albright, director of the media relations group for CMS.

"Our first responsibility is to make sure current policyholders are able to retain coverage through the end of the year," Albright said. "While we expect that the co-op will wind down, it is premature to speculate on the recovery of the funds

 

[AllenChicago]

I feel like I'm on a plank that's being pulled back, watching my shipmates fall into the sea, knowing that my turn is coming! All tricks and no treats from these Co-Ops.

Those of you who live in states with no Co-Ops and no Medicaid Expansion are blessed. The less ObamaNoCare, the better!

 

[Ann H]

One of the ironic things is that Meritus was in better financial shape than many co-ops. Someone posted this link just a few days ago, and Meritus was in the "Alive" category.

Is that CO-OP dead? Or alive but dying? | LifeHealthPro

Note also that since this article was published October 29th, 4 others have failed - CO, UT, TN and SC.

 

[AllenChicago]

One of the ironic things is that Meritus was in better financial shape than many co-ops. Someone posted this link just a few days ago, and Meritus was in the "Alive" category.

Is that CO-OP dead? Or alive but dying? | LifeHealthPro

Note also that since this article was published October 29th, 4 others have failed - CO, UT, TN and SC.

From the article that you (and Yagents posted earlier this week).
"For a look at a CO-OP status table, based on the data our staff was able to find as of noon Oct. 29, read on."

Then they proceed to post a status grid from December 31, 2014. Our newshounds here in this forum are better at finding later material than virtually every publication. We have the financial stats in the Co-Op thread up to June 30th. haha.

 

[Yagents]

Here is the DOI release. Plans were removed from HC.gov today.

 

[Ann H]

Thanks, Y.

So..... heads up. If you see your co-op's plans suddenly removed from hc.gov, it's a sign!

Meritus had the SLCSP for the first 10 months of 2015. So, subsidies should go up for 2 months of 2015. For a 42 year old, the SLCSP through October was $183. For Nov. & Dec. 2015 it's $210, which is 10.41% higher. Won't that be fun accounting at tax time?

BTW, the 1st and 2nd LCSP for 2016 was going to be an entirely different company anyway, so this had no bearing on 2016 subsidies.

 

[scagnt83]

One of the ironic things is that Meritus was in better financial shape than many co-ops. Someone posted this link just a few days ago, and Meritus was in the "Alive" category.

Is that CO-OP dead? Or alive but dying? | LifeHealthPro

Note also that since this article was published October 29th, 4 others have failed - CO, UT, TN and SC.

Ann, the term "dying" in that article means the Co-Op is being wound down and no longer issuing or renewing policies.

That chart really shows the difference in DOIs and their oversight. You have SC with a net 2014 loss of $3.8m that is being closed... but then you have the MA/NH exchange with a $20m loss in 2014 and it is still allowed to operate? Of course politics has nothing to do with who stays open and who shuts their doors!

 

[TN_agent]

Thanks, Y.

So..... heads up. If you see your co-op's plans suddenly removed from hc.gov, it's a sign!

Meritus had the SLCSP for the first 10 months of 2015. So, subsidies should go up for 2 months of 2015. For a 42 year old, the SLCSP through October was $183. For Nov. & Dec. 2015 it's $210, which is 10.41% higher. Won't that be fun accounting at tax time?

BTW, the 1st and 2nd LCSP for 2016 was going to be an entirely different company anyway, so this had no bearing on 2016 subsidies.

The same thing happened in TN this year with our co-op, (the one that folded) except it is the other way around. They pulled out to new business on January 15th I think. So the SLCSP for February and on was another more expensive carrier. So, the people who applied on hoc.gov and chose a plan early who did not go with the co-op are paying more this year than they have to and should get a refund at tax time. I think. If they didn't go in and change their app to recalculate subsidy.

 

[Yagents]

The comments are a hoot. When will libs face the facts?

Arizona health insurance co-op off the marketplace

 

[toddoxley]

The comments are a hoot. When will libs face the facts?

Arizona health insurance co-op off the marketplace

Yes, that they took albeit a not so perfect healthcare system and managed to completely screw it up... The next fix can not be worse than this, hopefully.