|Cuomo, federal regulators shut down Health Republic Insurance of NY, major Obamacare provider in NYS health exchange.|
|Text of press release.|
September 25, 2015
Contact: Matt Anderson, 212-709-1691
NYDFS, CMS, NYSOH ANNOUNCE ACTIONS REGARDING HEALTH REPUBLIC INSURANCE OF NEW YORK
Health Republic To Cease Writing New Insurance Policies; Current Policies Remain In Effect
Notice Provided Ahead of New York State of Health Open Enrollment Period, Helping Ensure Continuity of Coverage
Wide Range of Quality, Affordable Options from 16 Insurers Available to Consumers on New York State of Health Marketplace for 2016
The New York State Department of Financial Services (NYDFS), the Centers for Medicare and Medicaid Services (CMS), and the New York State of Health (NYSOH) health plan marketplace today announced actions regarding the Health Republic Insurance of New York co-op. NYDFS is directing Health Republic to cease writing new health insurance policies and the co-op will commence an orderly wind down after the expiration of its existing policies.
Existing individual Health Republic insurance policies will remain in effect through the end of their policy terms on December 31, 2015. NYDFS announced its intention to commence an orderly wind down of Health Republic ahead of the November 1 start of the NYSOH open enrollment period for 2016 policies, which will help ensure continuity of coverage by providing consumers with an opportunity to shop for new insurance from a wide range of quality, affordable plans for next year. A total of 16 health insurers are expected to offer individual coverage for 2016 on New York State of Health.
Anthony J. Albanese, Acting Superintendent of Financial Services, said: “Given Health Republic's financial situation, commencing an orderly wind down process before the upcoming open enrollment period is the best course of action to protect consumers. Moving forward, we will work closely with New York State of Health and federal regulators to help ensure continuity of coverage for Health Republic's customers.”
“In New York, we have a variety of quality, affordable options consumers can choose from on our health insurance marketplace," said NYSOH Executive Director Donna Frescatore. "New York State of Health and Department of Financial Services staff will be available today and in the coming months to assist Health Republic consumers with this transition to new coverage."
“CMS’ priority is to make sure that consumers have access to quality, affordable coverage through the Marketplaces,” said Kevin Counihan, Director & Marketplace Chief Executive Officer at CMS. “Because of the likelihood that Health Republic Insurance of New York would become financially insolvent, the NY State Department of Financial Services, NY Marketplace, and the Centers for Medicare and Medicaid Services agreed that it was in the best interest of HRINY policyholders and the overall health of New York Marketplace to wind down operations of HRINY at the end of 2015 and allow consumers to smoothly transition to a new plan during Open Enrollment, beginning November 1.”
Existing Health Republic small group plans – which, unlike individual plans, do not all have calendar-year policy terms – also currently remain in effect. NYDFS and NYSOH will evaluate the best course of action with regard to small group plans based on Health Republic’s ongoing financial results. Any future determinations made on small group plans will be announced with appropriate notice to help provide a transition period to new coverage and protect policyholders.
Providers are required under the terms of their contracts to continue delivering care to Health Republic customers. Any consumers facing issues with their coverage or who have additional questions should contact the NYDFS consumer help line at 1-800-342-3736. Beginning September 26, the NYDFS consumer help line will have extended hours in the coming weeks and will be available on weekdays (Monday through Friday) from 8:00 a.m. to 8:00 p.m and on Saturday 9:00 a.m. to 1:00 p.m. Consumers with questions about coverage available on the New York State of Health marketplace may also contact the NYSOH customer service line at 1-855-355-5777.