Utah’s Arches Health Plan marks 10th co-op clo­sure

Modern Healthcare - - REGIONAL NEWS - —Bob Her­man

An­other grave­stone has been added to the Af­ford­able Care Act’s co-op plan ceme­tery. Arches Health Plan in Utah will shut down by the end of the year, the state said last week.

Arches is the 10th not-for-profit coop plan to fold this year. It blamed un­ex­pect­edly low pay­ments from the ACA’s risk-cor­ri­dors pro­gram. The health plan up­dated its web­site last week to no­tify mem­bers that they will have to se­lect a new plan on the ex­change for 2016 when open en­roll­ment starts Nov. 1.

This month, the CMS said it would pay only 13% of risk-cor­ri­dor pay­ments, cre­at­ing a huge short­fall for in­sur­ers that had banked on those pay­ments to off­set high claims costs.

Since that an­nounce­ment, six co-op plans have said they will close by the end of 2015.

Arches had more than 45,000 mem­bers in the first quar­ter of this year, ac­cord­ing to in­sur­ance fil­ings.

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