Another One Bites the Dust. . .

insuranceconceptscindy

Guru
100+ Post Club
558
Las Vegas
Got this email this morning. Seems like our little co-op ran out of money. . .

Dear Broker,

After careful consideration, the Board of the Nevada Health CO-OP has decided NHC will not offer health insurance policies after December 31, 2015 and will voluntarily cease operations beginning January 1, 2016. Our health policies remain in effect, and members may continue to see providers under the terms of their policies.

Our goal is for all brokers and members to have a positive experience through this transition. We are committed to satisfying broker commissions that have been and continue to be earned through 2015. July commissions are currently being processed and will be mailed out soon. This run will be inclusive of a year-to-date review, showing your book of business in its entirety and paying any back commissions that are outstanding.

We have notified all individual members that they will need to select a new health insurer for 2016 and that their insurance agent can assist them with selecting a new plan during the upcoming open enrollment beginning November 1, 2015. Off exchange group business may be moved at any time between now and December 31, 2015. Thank you for your continued support in helping our members achieve a seamless transition with no gaps in coverage.
 
I expect more of this as 2015 claims continue to come in, and they reassess their financial positions/sustainability, and question their requested low rate increases.

In AZ, our Co-Op is raising rates only 3-5% and already have the cheapest rates in the state and lowest SLCSP in the nation.

At least in NV they are attempting to pay out commissions and claims, sounds like it's a calm wind down, vs an abrupt state takeover or liquidation.
 
Out here, the main problem seems to be the risk adjustment system.

Press Release - Minuteman Health

The get what they get... and they cant throw a fit.... look at the board of directors (if that's what you call them) not one single person has any experience in the trenches of health insurance or marketing in the indy market.... nice resumes though... but the directors appear to be a stupid lot for indy health market
 
The get what they get... and they cant throw a fit.... look at the board of directors (if that's what you call them) not one single person has any experience in the trenches of health insurance or marketing in the indy market.... nice resumes though... but the directors appear to be a stupid lot for indy health market

The board doesn't have much trench experience, but the management team does.
 
Back
Top