ObamaCare woes: Struggling Iowa health insurer taken over by state | Fox News

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A taxpayer-backed Iowa health insurer created under ObamaCare has been taken over by the state amid deep financial problems, sending policyholders in the Midwest scrambling for new coverage and raising questions about the status of similar outfits across the country.

The Iowa Insurance Division announced Wednesday that Insurance Commissioner Nick Gerhart was taking over CoOpportunity Health, a struggling cooperative that sprouted out of the Affordable Care Act.

A local court had granted Gerhart’s request to be appointed as “rehabilitator” of the nonprofit, after the state warned of its “hazardous financial condition.” Gerhart now has the authority to manage the company — and either restructure it or have its assets liquidated.

Gerhart told customers that those who enrolled before Dec. 15 and make their premium payments can keep their insurance.

But anyone who signed up Dec. 16 or later will not have coverage and now must enroll in other plans to stay insured. Further, if CoOpportunity Health goes under, a government safety net could protect those left holding their policies. However, the coverage “may be limited,” the state warned. And Gerhart is advising that most of the 120,000 CoOpportunity Health policyholders in Iowa and Nebraska “may find it in their best interests” to find new carriers by Feb. 15 — the deadline for open enrollment for 2015 coverage.

CoOpportunity Health will no longer offer its policies through Iowa’s online marketplace, either

via ObamaCare woes: Struggling Iowa health insurer taken over by state | Fox News.

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