Health Republic of New York, once the poster-child of Obamacare co-ops, was identified as being in financial trouble in mid-November. They were reported to have closed their doors at the end of November.
Want to know the reason? The company ran out of operating capital. This is a HUGE blow to Obama’s signature legislative achievement.
Although doctors and hospitals have been left holding the bag and are unsure, they’ll ever get paid for services rendered to Health Republic patients, the devastating, real-world consequences for individuals who signed up for the plan is where the greater pain will be felt.
“The shuttered company is no longer paying its claims, leaving doctors unsure whether they will ever be paid for seeing Health Republic patients. Some doctors have turned patients away, or are bargaining directly with patients over their medical fees…
Health Republic’s collapse has forced a panicked scramble among patients and doctors in upstate New York. Local doctors have worried that Health Republic will default on bills, and at least one practice, the Llobet Medical Groups, has turned away patients who have Health Republic insurance.
“This was one of the biggest disasters ever,” said David Cordner, an administrator of Llobet Medical Group, a primary care practice with offices in Margaretville and Kingston. “I don’t understand why New York didn’t see this a lot sooner. Nobody got paid. Where was the money going?”
New York legislators are asking the same question.
Health Republic received $265 million in federal loans to get operations started with nary a dime remaining. Governor Andrew Cuomo, two state senators and U.S. Congressman Chris Gibson have called for an investigation.
Patients are being told by their doctors that their insurance is no longer accepted.
Can you imagine the thousands of NY residents who are affected by this debacle? Share your comments below and add this story to your social media timeline to wake up your friends and family to what Obamacare is doing!