All exchange customers will remain fully covered through the end of 2016, but then must find a new plan for 2017 when open enrollment begins Nov. 1, since HealthyCT "will no longer be offered," according to the Connecticut Insurance Department.
For employer plans, the co-op is now barred from writing any new business or renewing any existing business effective Aug. 1. HealthyCT group plans that renewed July 1 will have coverage through June 30, 2017, from the co-op.
After that, the insurance department said, it "will work closely with HealthyCT, the state exchange Access Health CT, the broker community and other carriers to help large and small employers find new coverage when it comes time for them to renew their plan annually."
The head of the state's Obamacare marketplace, Access Health CT, said it is developing a plan to inform customers of HealthyCT who purchased plans through that exchange "of their change in status and to inform them that they will need to shop for a new plan come November."
Wade said HealthyCT's financial health became "unstable" by a federal requirement issued last week that the co-op pay $13.4 million to the U.S. Department of Health and Human Services as part of Obamacare's risk adjustment program, as well as a related Obamacare program called risk corridors.
The risk adjustment program is designed to spread out the financial risk of insuring people with Obamacare plans by redistributing money from insurers with healthier customers to companies with sicker customers. But smaller insurers, particularly co-ops, have sometimes been strained by the program because their balance sheets are not large enough to cover the costs from it.