Health Republic Insurance of New York, the failed nonprofit health-insurance co-op, owes New York hospitals more than $142 million at minimum and likely over $150 million when counting is completed.
That’s according to a memo that the Greater New York Hospital Association (GNYHA) sent to its members on Wednesday, as reported by Crain’s New York Business.
The hospital trade group, which represents hospitals across New York state, generated those figures from a survey of its members.
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Several hospitals told the GNYHA that Health Republic owes them more than $10 million for outstanding medical bills. “This is a dire situation…,” Kenneth Raske, president of GNYHA, said in the memo.
The New York State Department of Financial Services (NYDFS) ordered Health Republic to stop writing new health-insurance policies and end all coverage on Nov. 30. Health Republic had about 200,000 customers and NYDFS has given them until Nov. 30 to purchase a different health-care plan on the state’s exchange.
NYDFS also recently announced it has started an “official investigation” into Health Republic’s state filings about its financial condition, saying it found that Health Republic’s finances were “substantially worse” than the company previously reported.
In its memo, the GNYHA told its members it would seek legislation that would create a health-insurance guarantee fund that could retroactively cover hospital losses for medical claims Health Republic didn’t pay “and protect hospitals in the event of future insurer insolvencies.”
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