After suffering $90 million losses last year, Illinois co-op Land of Lincoln Health is shutting down, according to abc news.
Here are six highlights:
1. The news comes nearly two weeks after Illinois Department of Insurance Acting Director Anne Melissa Dowling issued an order for Land of Lincoln Health to not pay the federal government in an effort to avoid "an immediate liquidation" of the co-op.
2. However, Land of Lincoln Health had losses surpassing $17 million for 2016 as of May 31.
3. Illinois Department of Insurance officials are requesting an order to allow the state to take control of the co-op to begin the liquidation process.
4. Land of Lincoln Health's 49,000 policyholders will have a 60-day special enrollment period to seek new coverage.
5. In June, Land of Lincoln Health filed a lawsuit against the federal government over $72.8 million unpaid claims the payer alleges it is owed under the risk-corridor program. Land of Lincoln received only $550,000 in 2014, substantially less than the $4.5 million the payer requested.
6. Last year, payers requested the government pay them $2.87 billion for participation in the risk-corridor program. In October 2015, the government said it would pay less than 13 cents on the dollar of the amount payers requested.
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