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GovWatch: CoOpportunity Under Rehabilitation

Friday, January 9, 2015   (0 Comments)
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Published weekly during the state legislative session by NAIFA-Iowa.

Thursday, January 8, 2015

CoOpportunity Under Rehabilitation
NAIFA-Iowa represented at meeting with Commissioner Nick Gerhart

Dear NAIFA-Iowa members:

There has been great concern among many of our members, as well as our clients, with Insurance Commissioner Nick Gerhart’s announcement of the Order for Rehabilitation of CoOportunity Health on December 23, 2014. Information on this announcement and follow up communications can be accessed on the insurance division’s website. You may recall representatives from NAIFA-Iowa participated with others from the Big I and NAHU in a consortium to work with Iowa officials regarding the Affordable Care Act in the past. This group is actively involved in this issue.

On January 5, 2015, a series of meetings were held with the representatives of each organization, and our counterparts from Nebraska, including NAIFA trustee Chuck Olson. After a preliminary agent meeting, the group met with Commissioner Gerhart, Deputy Commissioner Armstrong and Becky Blum, ACA Project Manager with the division, at the division office. We are grateful they were able to give us some of their time.

As you would guess, at this early stage there are still many more questions than answers. The Division is in daily contact with CMS, at a high level of authority, to work through this. As a group, we were looking to get current status on issues affecting our clients and our members. For our clients, we are trying to identify all options available and make any transition as easy as possible. The FAQ from the Division on 12/24/2014 under #3 stated that “most policyholders may find it in their best interests to find other coverage before the end of open enrollment, which ends February 15, 2015.” Changing from rehabilitation to liquidation may constitute an event for a SEP later in the year. On the agent side there were concerns on exact effective dates, ease of transfer to other carriers, what the suspension of agent compensation meant and when it applied, unfair trade practices, etc. The group was able to make some suggestions that may help ease some of these problems and the division agreed to look into those.

The Insurance Commissioner could not (and should not) speculate on the final outcome at this point. The division is hopeful that with more decisions and information at the federal level, they will be able to formulate a more concrete plan over the next several days. This is a situation that can and will change rapidly. Continue to rely on your current sources of information, including NAIFA-Iowa for any updates.

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