New Jersey’s insurance regulator shut down the state’s co-op insurer because of its deteriorating financial condition, marking the demise of yet another Affordable Care Act insurer.
Health Republic Insurance of New Jersey will be placed in rehabilitation, which will allow current customers to continue to use their health insurance policies through year-end. The state Banking and Insurance Department said the co-op will advise clients on their 2017 options.
Only six of the initial 23 co-ops remain in business.
The New Jersey plan ran into trouble when it was hit with a massive ACA risk-adjustment payment that disrupted its finances. It was expected to pay $46.3 million because its customers were seemingly healthier than other insurers’ bases. Co-ops have alleged the risk-adjustment model is flawed and weighted in favor of larger insurers.
The co-op has 26,000 individual policyholders and 9,000 members on small-employer health plans, according to New Jersey regulators.