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Finding out what’s in it: New York’s Obamacare co-op, the country’s largest and the one that took the most government loans to get established, is now facing bankruptcy and collapse.
It is unclear if the co-op deliberately misled state regulators in its original filings, or if regulators found evidence of financial wrongdoing while they tried to close down the defunct non-profit. The co-op’s insolvency was announced September 25.
The New York Department of Financial Services, which regulates insurers in the Empire State, also revised its earlier announcement to the co-op’s 215,000 policyholders that they had until Dec. 30 to find new insurance coverage. Regulators now advise the co-op’s enrollees, many who are poor, that they have to secure new coverage within the next two weeks. DFS said in a statement late Friday that consumers “must take action to choose a new plan for the remainder of 2015 on or before November 15, 2015.”
It also appears that the co-op has been understating its bad financial condition to government officials. Other than that, things remain peachy-keen!