Louisiana Health Cooperative to cease operations (policies comvered until Dec 31, 2015)

[PoliticAverse]

METAIRIE, La.--(BUSINESS WIRE)--Today, Louisiana Health Cooperative, Inc. (LAHC) announced that the company has voluntarily decided that it will not participate in the upcoming open enrollment period for policies effective January 1, 2016; but will continue to honor policies and protect lives through December 31, 2015, as it begins to cease operations. LAHC provides health insurance coverage to more than 16,000 Louisiana members and is committed to making this transition non-disruptive for all involved parties – members, providers, employees and brokers.

“We are committed to all of those impacted by this decision, and we have capital allocated to fulfill all financial obligations through and following the end of the year, including staffing, provider funds and our other obligations.”

“LAHC has sustained itself over the last few years, but is not growing enough to maintain a healthy future. By proactively and voluntarily addressing our situation now, LAHC will be in a position to maintain all of its policies in force through the end of the year, and to cover all outstanding claims and operating expenses,” stated Greg Cromer, LAHC’s Chief Executive Officer. “We are committed to all of those impacted by this decision, and we have capital allocated to fulfill all financial obligations through and following the end of the year, including staffing, provider funds and our other obligations.”

LAHC is proactively working with the Center for Medicare & Medicaid Services (CMS) and the Louisiana Department of Insurance (LDI) to ensure that all required deadlines are maintained, specifically as the open enrollment period approaches. Members will have the opportunity to shop for new, 2016 health insurance coverage through Healthcare.gov during the upcoming annual open enrollment period and avoid any lapse in health insurance coverage.

Rest of the press release is at: http://www.businesswire.com/news/home/20150724005862/en/#.VbagJUa8Rzk

[Agnosticsherbet]

1. I see this over and over, business models that require high growth rather than sustained operation.

Perhaps it is time we changed the way we model business.