Troubled nonprofit insurer Colorado HealthOP on Monday sued for the right to continue selling policies in 2016 as it explored solutions to its financial problems.
But at the eleventh hour — and after a closed-door court hearing from which reporters were removed — the low-cost insurer said it will begin shutting down.
HealthOP filed a request in Denver District Court seeking to reverse a decision by state regulators to remove the co-op from Connect for Health Colorado, the state health-insurance exchange.
"All I can say is that we will work with the Division of Insurance to wind down the company," Colorado HealthOP CEO Julia Hutchins wrote in a text message to The Denver Post after the hearing. "There will be no further hearings. And no further comments from me."...
Colorado HealthOP was dropped from the insurance marketplace because the low-cost insurer did not meet state capital-reserve requirements, the Colorado Division of Insurance said Friday.
Without the ability to sell new policies, the cooperative is out of business.
This is what happens when the government thinks it knows better what consumers want than the consumers.