Update: Troubled ACA Co-Op Suspends Agent Commissions; Iowa Commissioner Responds to NAIFA

Earlier this month, NAIFA reported to members that CoOportunity Health, the Affordable Care Act Co-Op based in Iowa (which also operated in Nebraska), was heading towards insolvency.  Earlier this year, an Iowa district court placed the Co-Op under the control of the Iowa Insurance Division (IID) which is now liquidating the company. 
 
NAIFA previously informed members that during the rehabilitation phase, the Iowa Insurance Commissioner decided to suspend commissions to agents in Nebraska and Iowa, as well as payments to other professionals to preserve limited Co-Op funds in an effort to save the failing insurer. 
 
NAIFA-Nebraska sent a letter to the IID urging the agency to reconsider this decision. In response, the Commissioner, after evaluating the deteriorating financial condition of the Co-Op, defended his decision as a necessary measure to ensure that the Co-Op was able to meet the obligations to its policyholders in order to ensure their access to needed medical care. 
 
While there currently is no funding available in the Co-Op to pay agent commissions, the Commissioner said he is hopeful that the Co-Op will be eligible for payments from the ACA risk programs which could deliver as much as $150 million to the Co-Op. These funds would help enable the Co-Op to meet some of its financial obligations, which include compensating agents and other professionals to whom money is owed.  NAIFA does not yet know when the Co-Op will receive such funds. 
 
The Iowa Commissioner, a former NAIFA member, commended agents and brokers for assisting their Co-Op clients in enrolling in a new policy with another carrier to prevent any interruption in health insurance coverage.

NAIFA staff will keep members updated on this important issue.


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