Tennessee’s Health Co-Op To Close

The Washington Post  (10/15) reports in brief coverage that Tennessee’s “Obamacare health insurance co-op announced Wednesday that it would close at the end of 2015, becoming the sixth of 23 such plans to collapse in the past year.” The nonprofit insurer, known as Community Health Alliance, said it made the decision “after careful analysis of the company’s current and future financial condition” and discussions with Federal and state regulators.

The Hill  (10/15, Ferris) reports Tennessee Insurance Commissioner Julie Mix McPeak said in a statement, “With thousands of Tennesseans’ coverage hanging in the balance, [the co-op’s] financial success could not be guaranteed.” HHS spokesman Ben Wakana stated, “We are working with Tennessee officials to do everything possible to make sure consumers stay covered.” The Hill adds that the co-op’s pending closure raises further “concerns about the future of a program designed to increase competition in the marketplace.”

The Memphis (TN) Commercial Appeal  (10/15) reports that Community Health CEO Jerry Burgess said in a statement that HHS’ announcement last week “of a risk corridor reimbursement of just 12.6 percent cast doubt on the collectability of over $17 million of CHA’s risk corridor receivable and led to an unavoidable outcome.”

The Tennessean  (10/15, McGee) reports that the closure of Community Health Alliance will force about 27,000 Tennesseans “to find new health insurance plans.” Four carriers remain on the Federal marketplace in Tennessee.

The Knoxville (TN) News Sentinel  (10/15, Nelson, Kimel) and the Washington Examiner  (10/15) also report the story.