Ninth cooperative formed under Affordable Care Act closing

AP News
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Posted: Oct 22, 2015 3:28 PM

COLUMBIA, S.C. (AP) — A South Carolina health insurance cooperative says it is closing, becoming the ninth cooperative formed nationwide under the Affordable Care Act to fold.

The state Insurance Department announced Thursday that Consumers' Choice Health Insurance Co. will not sell policies in 2016, leaving 67,000 individuals and business customers looking for insurance.

The company said it is shutting down because of changes in the Affordable Care Act.

Insurance companies had sought $2.9 billion for covering people in so-called risk corridors last year. But they will only receive about $360 million, less than 13 percent of the request. Risk corridors were designed to ease the impact on companies of taking on uninsured people.

Twenty-three health insurance cooperatives were formed under the Affordable Care Act.