A major insurer run by New York state’s largest medical provider is pulling out of ObamaCare because of massive losses, the company announced Thursday.
Northwell Health (the former North Shore-Long Island Jewish Medical Center network ) blamed a flawed provision in the Affordable Care Act — and the lack of action in Washington to fix it — as the culprits for winding down its CareConnect insurance company.
CareConnect enrolled 14 percent of firms in New York’s small group market and 8 percent of customers in the individual ObamaCare market — mostly on Long Island and in New York City.
The firm said it had to pay $112 million last year into a risk insurance pool created to prop up insurers that had a disproportionate number of high-risk or money-losing clients.
The pool was designed to prevent insurers from “cherry-picking” younger and healthier customers who are less expensive to cover.
Northwell Health (the former North Shore-Long Island Jewish Medical Center network ) blamed a flawed provision in the Affordable Care Act — and the lack of action in Washington to fix it — as the culprits for winding down its CareConnect insurance company.
CareConnect enrolled 14 percent of firms in New York’s small group market and 8 percent of customers in the individual ObamaCare market — mostly on Long Island and in New York City.
The firm said it had to pay $112 million last year into a risk insurance pool created to prop up insurers that had a disproportionate number of high-risk or money-losing clients.
The pool was designed to prevent insurers from “cherry-picking” younger and healthier customers who are less expensive to cover.
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