The Kentucky Health Cooperative is going out of business at the end of this calendar year. The company announced in a press release Friday that it will not offer health insurance plans for 2016.
The nonprofit health insurance company serving all 120 Kentucky counties did not receive federal risk corridor funding it had relied on, according to interim CO-OP CEO Glenn Jennings.
“It is with sadness that we announce this decision,” said Jennings. “This very difficult choice was made after much deliberation. If there were a way to avoid it and simultaneously do right by the members, providers and all others that we serve, we would do so.
“In plainest language, things have come up short of where they need to be,” Jennings added.
The CO-OP will not offer health insurance plans on Kentucky’s health insurance Marketplace, or Exchange, when Open Enrollment for 2016 coverage starts on November 1. The CO-OP is currently serving around 51,000 members. Current memberships will end Dec. 31, 2015.
The CO-OP said it is focused on paying its members, providers, vendors, agents and employees. In partnership with the Kentucky Health Benefit Exchange, the CO-OP is reaching out to its members regarding health insurance options for the upcoming Open Enrollment, which runs Nov. 1, 2015, through Jan. 31, 2016. It is also working with the Kentucky Department of Insurance and the Centers for Medicare & Medicaid Services to help ensure a smooth transition.
See the press release here.
[small][well]News article reposted from the Kentucky Medical Association page[/well][/small]
