Health Republic of New Jersey, the co-op insurance company created in response to the Affordable Care Act marketplace that was put into rehabilitation late last year, is now in liquidation, according to documents filed by the state Department of Banking and Insurance last month.
The document calls for a termination of the rehabilitation process and offers a window of opportunity until Feb. 24 until for any claims or interest in the company to be filed.
The fate of Health Republic is no different than other co-ops around the country, many of which folded within the past two years.
Having been located in New Jersey, a state that already had many of the mandates and regulations of the ACA in place, and a team with insurance experience in New Jersey leading the company, Health Republic officials previously told NJBIZ they felt they were prepared to compete in the marketplace.
But following departures of larger insurers from the ACA marketplace, timed with the ending of risk stabilization payouts, Health Republic was unable to maintain required cash on hand levels and put into rehabilitation.
Health Republic previously said to NJBIZ that it was told in December 2015 that CMS projected its liability from the pooled risk adjustments was $17.1 million. Six months later, the insurer was told that number was actually $46.3 million.
An interested investor could save the insurer, but the uncertainty around the ACA makes that scenario unlikely, experts have said.
Officials for Health Republic did not return calls for comment.