Sen. Kelly Statement re: Insurance Department Places HealthyCT Under Order of Supervision as Insurer Faces Financial Trouble
July 6, 2016Hartford – State Senator Kevin Kelly (R-Stratford), Ranking Member of the state’s Insurance Committee, released the following statement regarding the Insurance Department today placing HealthyCT, a co-op health insurance company, under an immediate order of supervision. HealthyCT was described by the Insurance Department as being in “hazardous financial standing” following a federal requirement issued June 30, 2016 that it pay $13.4 million to the federal government as part of the Affordable Care Act’s (ACA) Risk Adjustment Program. The order of supervision prohibits the company from writing new business or renewing existing business in Connecticut as a way to protect current policy holders.
“I thank the Insurance Department for stepping in to protect the consumers who currently have HealthyCT plans,” said Sen. Kelly. “But let’s be very clear about what caused this problem. We are seeing the direct effects of an unsustainable health care system created by the Affordable Care Act. Democrats initially sold the Affordable Care Act as a step forward for health care. It was touted as a sound, robust way to improve access to health care and reduce costs while maintaining quality services. Meanwhile, Republicans made the observation that while everyone wants to see better, more affordable care, the ACA could never be the be-all end-all solution. We warned that creating a system like this was not sustainable.
“The HealthyCT CEO just two months ago was quoted as saying how viable and stable HealthyCT was. And last November there were also boasts of confidence. But the insurer did not see the obvious, well-known federal plan to turn off the flow of federal funding. Now, without that false sense of stability created by federal dollars, Connecticut insurers are either requesting steep rate increases or they are in deep financial trouble. The ACA is not sustainable, the federal government is seeking more funding, and the insurers created by the ACA simply cannot afford to pay what they need to keep the system going. Come November, Connecticut may only have two insurers left on the state’s health exchange. Our families and our children – the insurance consumers – are the ones who will lose out on choice, affordability and access.”