State agency seeks to take over failing health co-op

How to translate the language?

The morning paper reports that the Nevada Division of Insurance has gone to court in a bid to immediately take over the Nevada Health C0-op, which earlier announced it would be shutting down at the end of year because it was hemorrhaging money, including $66 million in federal loans.

The state agency is asking that it be allowed to take “control of the CO-OP’s assets, distribution of funds and administration.”

The agency said in a statement that the co-op’s “wind-down plan … raised concerns about the CO-OP’s ability to successfully manage, account for and meet its obligations through the end of 2015 on its own.”

Might that mean the co-op plans to spend too much of its remaining assets on salaries for its Culinary union-linked executives?

The Nevada co-op had administrative expense-to-premium ratio at 37 percent — almost double the 20 percent allowed — partly due to sky-high salaries paid to executives with ties to a union that represents casino workers. The co-op in 2013 paid more than $1 million to just three executives.

All but one of the 23 state-based health insurance co-ops set up under ObamaCare are losing money.

On Friday the state of New York ordered co-op Health Republic to wind down operations because the cooperative is likely to become financially insolvent.

Nevada Health Co-op office (R-J photo)

 

 

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One comment on “State agency seeks to take over failing health co-op

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