Utah seeks $26 million from insurers to cover unpaid claims
SALT LAKE CITY (AP) — Utah officials want health insurers to help cover millions of dollars in unpaid medical claims left behind after the closure of a health insurance company, but those carriers are saying no.
The Deseret News reports Arches Health Plan announced in October 2015 it would no longer offer insurance on the federal health exchange beginning in 2016, citing an extreme shortfall in expected financial help from the Affordable Care Act’s risk corridor.
The health co-op was insuring about 45,000 Utah residents on the exchange at the time.
The Utah Insurance Department filed a motion in February, requesting seven insurers help pay $26.6 million in unpaid Arches claims.
The department argues state law says those insurers should be required to pay for unmet claims proportionate to their earnings from premiums during the previous year.
Three of the affected insurers filed opposing motions, saying they bear no such financial responsibility.
Information from: Deseret News, http://www.deseretnews.com