July 6, 2016 (New Haven, CT) – The Connecticut State Medical Society (CSMS) has issued the following statement regarding the Order of Supervision issued on July 5, 2016 by the Connecticut Insurance Department (CID) for HealthyCT, a Consumer Operated and Oriented Plan (CO-OP).
The Order of Supervision was triggered by a June 30, 2016 federal requirement that HealthyCT pay $13.4 million as part of the Affordable Care Act’s Risk Adjustment Program. The Order prohibits the company from writing new business or renewing existing business in Connecticut.
Since the implementation of the ACA, many CO-OPs across the country have struggled with the federal risk adjustment requirements, which place smaller, newer non-profit insurers like HealthyCT at a disadvantage.
The Affordable Care Act saw value in establishing CO-OPs, and CSMS was proud to have been one of the original sponsors of HealthyCT, our state’s first new non-profit insurer in forty years.
It is unfortunate that the ACA has also made it difficult for these member-driven non-profit plans to survive. As a result, Connecticut consumers and employers will have fewer health insurance choices for the foreseeable future.
CSMS has repeatedly expressed concern about our state’s highly-concentrated health insurance market and the need for healthy competition. This market concentration will only be exacerbated by HealthyCT’s exit.
CSMS VP of Communications