Nearly half of the 23 Obamacare co-ops have now failed, and Meritus, Arizona’s only non-profit health insurance Cooperative (CO-OP) is the latest one.
Meritus will close down operations on December 31, due to its inablity to find adequate financial backing. The organization had been placed under supervision by the Arizona State Department of Insurance in October with the intention of winding down operations at the end of 2015.
Meritus will not offer health insurance plans for 2016.
Approximately 59,000 members will have to shop for new coverage for 2016.
Meritus advised policyholders that if they do not want to have a gap in coverage, they should purchase a new plan prior to December 15, 2015 during Open Enrollment, or by December 31, 2015 during a Special Enrollment Period.
Individuals may shop on Healthcare.gov, or select a plan off-exchange, but tax credits are only available through plans offered on Healthcare.gov.
Claims should be submitted as usual, according to Meritus. Eligible claims will still be paid in accordance with the terms of your health insurance policy, as long as you timely pay your premium through the end of December 2015.
Tax credits and cost-sharing reduction benefits will remain in effect through December 31, 2015, as long as you retain your income eligibility and pay your premiums.