State regulators announce earlier end to Health Republic’s small group plans

Small business owners who provide health insurance to their employees through Health Republic thought they had until the end of the year to find a new insurance provider to replace the one-year-old co-operative being shut down by the state for insolvency. They found out today they will need to replace their insurance a month earlier.

The state Department of Financial Services, the New York State of Health Marketplace and the Centers for Medicare and Medicaid Services today announced that a review of Health Republic’s finances found that the company’s financial condition is substantially worse than the company previously reported.

“In light of these developments, NYDFS and the NYSOH Marketplace have determined that it is in the best interest of consumers to end all Health Republic policies – both individual and small group – on November 30, 2015 so that customers can transition to new coverage after that date,” the agencies announced.

The Department of Financial Services on September 25 directed Health Republic to cease writing new health insurance policies and announced that the co-op would commence an orderly wind-down after the expiration of its existing policies. Individual plans would be terminated as of Nov. 30, regulators said at the time. Small group plans were to continue in effect until the end of the year.

Today’s announcement leaves business owners and insurance brokers scrambling for coverage.

“It’s very short notice,” said Karl Washwick of the Washwick Agency in Riverhead this afternoon. “People who thought they had two months to make a move, now have only a month.”

Some policy holders have reported experiencing trouble with health services providers not wanting to accept Health Republic despite being in the co-op’s network.

“At this point, they are afraid they’re not going to get paid,” Washwick said.