The State of New York has announced that it is opening an investigation into failed Health Republic, the largest Obamacare co-op in the nation, saying the insurer did not truthfully report its financial condition to regulators.
The New York State Department of Financial Services says in a press release
that "it found that Health Republic’s finances were substantially worse than the company previously reported to the state, making it necessary to end the company’s policies as of November 30, 2015."
The state also announced that it would extend the deadline for Health Republic members to choose new coverage to Nov. 30, after which it would auto-enroll members in new health plans.
“We will continue to take aggressive action to protect consumers in the wake of Health Republic’s failure. The extended deadline and auto-enrollment option are important steps in helping ensure the company’s customers do not go without insurance," Anthony J. Albanese, Acting Superintendent of Financial Services, is quoted as saying in the release.
"Additionally, while our first and primary focus is protecting consumers, we are also investigating the inaccurate representations Health Republic made to the State about its financial condition.”
The state had originally set Nov. 15 as the original deadline for Health Republic members to choose other plans, Syracuse.com reports.
James T. Mulder, writing for Syracuse.com, reports that:
"Health Republic, backed by $265 million in federal loans, debuted in 2014 and captured the biggest share of new business on the state's health insurance exchange created by the federal Affordable Care Act, also known as Obamacare. It has about 200,000 customers in New York, including 4,060 in Central New York."
"Health Republic is the largest of the 23 Obamacare co-ops in the country. It was founded by political activist Sarah Horowitz, who first met then-Senator Barack Obama when they both worked at the same think tank," the Daily Caller reports.
Taxpayers are expected to take the hit for $355 million in losses from the failed venture, the Daily Caller reports.
© 2021 Newsmax. All rights reserved.