Health Republic Insurance, one of Oregon’s two Consumer Operated and Oriented Plans (CO-OPs), said Oct. 16 it will not offer plans in 2016 and will cease operations effective Dec. 31, 2015. Following in the footsteps of two other recently shuttered CO-OPs, Health Republic attributed its decision to close to Oct. 1 announcement of a reduced risk-corridor reimbursement for the 2014 plan year.

“The government’s refusal to honor its risk corridor obligations represents a negative financial impact of over $20 million,” Health Republic President and CEO Dawn Bonder said in a press release announcing the decision. “This has placed us in a difficult financial position that could jeopardize our members and partners.”

“We will review Health Republic’s wind-down plan and work closely with Health Republic to ensure that individuals and businesses currently enrolled with Health Republic are protected,” said Oregon Insurance Commissioner Laura Cali in a statement from the Oregon Department of Consumer and Business Services announcing the decision.

Current Health Republic individual and small group policies remain in effect through 2015; the insurer says it has nearly 15,000 members in its on- and off-exchange products. According to current PBX data, these members will have 10 other insurance companies to choose from on Oregon’s 2016 public exchange.

© 2015 by Atlantic Information Services, Inc.