Iowa’s insurance commissioner says it’s too early to make predictions about the fate of health co-ops set up under the Affordable Care Act, but thousands of Iowans are scrambling to find a new insurer after one of those co-ops essentially collapsed last month. Nick Gerhart was recently assigned management of the nonprofit insurance provider CoOportunity. The leaders of CoOportunity initially thought they would enroll about 12,000 people in Iowa and Nebraska, but Gerhart says they got about ten times that.
CoOportunity hit a kind of perfect storm, according to Peter Damiano (DAH-mee-on-oh), director of the University of Iowa’s public policy center. First, the co-op had to pay a lot more medical bills than those in charge expected.
The reason the co-op’s customers were sicker has a lot to do with what the insurance market looked like in Iowa before Obamacare. The largest insurer by far in the state was and still is Wellmark. But Wellmark decided not to offer any plans on Iowa’s health exchange, leaving just CoOportunity and one other insurer – Coventry – offering plans on the exchange throughout the state. Gerhart says, the co-op thought it was going to get more federal money, but learned on December 16 that financing wasn’t being extended. Gerhart says even though CoOportunity is not officially dead yet, customers should switch insurers.
