US-based startup insurance company CoOportunity Health is being taken over by the state officials of Iowa, owing to shortage of capital.
The Polk County District Court issued an order appointing insurance commissioner Nick Gerhart as rehabilitator of the insurance company, in response to the commissioner’s petition for an order of rehabilitation.
According to Iowa government, the insurance firm did not oppose this order in recognition of the financial concerns of the insurance division.
Under the court’s order, the company will not enroll or accept applications for policies on the federal health insurance marketplace for Iowa for 2015.
Despite of receiving $145m loan from the US government under Obamacare, the company is being taken up by the state due to insufficient capitalisation, inability to obtain additional capitalization from the Centers for Medicare and Medicaid Services and the unavailability of federal payments of the risk mitigation programs until the second half of 2015.
Image: Iowa state officials to take over insurance company CoOportunity Health. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.