Illi­nois in­sur­ance reg­u­la­tors try to save co-op plan

Modern Healthcare - - REGIONAL NEWS - —Kris­ten Schorsch, Crain’s Chicago Busi­ness

The Illi­nois De­part­ment of In­sur­ance is bind­ing the hands of Land of Lin­coln Health in an ef­fort to pre­vent the strug­gling Oba­macare startup from fold­ing.

The de­part­ment has or­dered the Chicago-based not-for-profit to stop re­new­ing poli­cies for small and large busi­nesses, stop sell­ing all new plans with­out per­mis­sion and not to pay $31.8 mil­lion it owes as part of a fed­eral risk-ad­just­ment pro­gram. Mak­ing the payment could force the co-op to close.

“A midyear liq­ui­da­tion would trig­ger mar­ket­place dis­rup­tion and ex­treme fi­nan­cial harm” to Land of Lin­coln’s 49,000 en­rollees if their poli­cies were can­celed midterm and be­fore open en­roll­ment for 2017 be­gins in the fall, Anne Melissa Dowl­ing, act­ing di­rec­tor of the In­sur­ance De­part­ment, wrote in a June 30 let­ter to Kevin Couni­han. He over­sees the ex­changes for the CMS.

Ja­son Mon­trie, pres­i­dent and in­terim CEO of Land of Lin­coln, said he views the state’s de­ci­sion as a way to pro­tect con­sumers. “We feel good about the steps the de­part­ment is tak­ing,” Mon­trie said, adding that he’s “ab­so­lutely con­cerned” about the im­pact cer­tain Oba­macare pro­grams meant to sta­bi­lize the plans are hav­ing on in­sur­ers.

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