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COLORADO HEALTHOP VOWS TO FIGHT FOR MEMBER INTERESTS AFTER DIVISION OF INSURANCE’S CLOSURE DECISION
Greenwood Village, CO (October 16, 2015) – It was made public earlier today that Colorado HealthOP has closed its doors and will no longer operate as a retailer for affordable health insurance within the framework of Connect for Health in the state of Colorado.
The news came on the heels of similar tidings announcing the shutdown of a number of CO-OP businesses nationwide. The reason behind this epidemic of closures in the Division of Insurance (DOI) is the shortage of the government financing. The enterprise was estimated as profitable despite the fact that Colorado HealthOP were funded as a private business and were kept afloat against the background of the government funding shortage estimated at $10 million.
Unfortunately, the optimistic prognosis for the next fiscal year and large contributions to the Federal Reserve did not prevent the shutdown. It is worthwhile mentioning that the company was prepared to pay off its start-up federal loan early on, but instead will be forced to default on its loan money estimated at %72 million.
The repercussions will be experienced not only by the company’s employees, but by subscribers to its services who make up 40% of the health insurance market, who will have to choose between significantly more expensive health insurance plans or having none.
The approximate cost of Colorado HealthOP closure is some $40 million that could have stayed in taxpayers’ pockets if the company was kept on the market.
Ousting CO-OP from the state’s health insurance market will inevitable bring on the increase in health insurance prices for consumers.
The press release note from CO-OP CEO Julia Hutchins reflected strong feelings of anguish and underwhelment brought on by the ruling of the Colorado Division of Insurance. This sad surprise stems from the fact that DOI chose to close a dynamically developing and financially sound start up with promising financial future and civil responsibilities. The company’s CEO highlighted that Colorado HealthOP was contributing to the affordable health assurance environment, diversifying the tools available on the market and giving access to economical healthcare to more than 80,000 Coloradans. The head of the enterprise expressed regrets over the course chosen by the DOI that stripped the taxpayers off a considerable sum of money in expenses linked to the company’s default and even more so with all of the lost opportunities for low-cost healthcare solutions lost. Julie Hutchins then stated that CO-OP is determined to provide the assistance to the state’s citizens in every possible way.
The company’s management issued a demand for the DOI to appoint an unbiased third-party ombudsman protecting consumer interests to take part in reviewing claim denials and other procedures associated with the wind-down of the insurance company. This will help the Board of Directors make sure that the corporate philosophy is respected even at the stage of the shutdown which is carried out in a fair and impartial manner with financial matters not being the beginning and the end of this process.
About Colorado HealthOP
The history of Colorado HealthOP goes back to 2012; during the years of its existence the company has grown to be a healthcare plan provider to 80,000 subscribers. The values of the enterprise are centered around economically available plans covering all consumer needs. What makes the company stand out from other health insurance businesses is its non-profit nature that makes it possible to offer the cheapest health insurance products on the market. Another distinctive feature of the company is the power of the participants’ voice and the impact it has on our policies. Subscribers to our plans have a say in how they see their products to be managed. The equity is balanced by directing any excess in the revenues over expenditures towards measurable benefits of the company’s subscribers: decreasing the cost of premiums, diversifying the bonuses or upgrading the services.