NASHCO statement after announcement that Federal and State regulators will wind down Health Republic Insurance of New York

September 25, 2015


WASHINGTON, DC – Kelly Crowe, CEO of the National Alliance of State Health CO-OPs (NASHCO), made the following statement after today’s announcement that Federal and State regulators will begin the process of winding down operations for Health Republic Insurance of New York:


“From practically their inception, health insurance CO-OPs have been hamstrung by both the structure of the program and the way in which the Affordable Care Act was implemented. Though it has become clear that initial capitalization levels for most CO-OPs were insufficient for the short term, regulatory obstacles have continued to make it virtually impossible for these CO-OPs to raise additional third party capital to support growth.


“More recently, the risk adjustment and risk corridor programs—programs intended to help offset the unpredictability of risk and adverse selection for all insurers entering the marketplace—have hit many CO-OPs and other new insurers particularly hard, while simultaneously bolstering many large, established insurers.


“Despite these challenges and announced dissolution of several CO-OPs, NASHCO remains firm in its view that the CO-OPs play a critical role in providing a non-profit and member-governed alternative for high-quality health insurance. They continue to drive innovation, keep rates lower in states in which they operate, and provide members with a say over their health insurance decisions.”


“NASHCO will continue to work with our members, regulators, and other stakeholders to help create an environment in which CO-OPs can more easily achieve long term success.”




Based in Washington, DC, the National Alliance of State Health CO-OPs is the trade association for non-profit health insurance CO-OPs. NASHCO was formed after the passage of the Affordable Care Act, and was designed to promote the development and success of health insurance CO-OPs. All current health insurance CO-OPs are members of NASHCO. In the last four years, NASHCO has hosted multiple conferences to bring together those interested in the innovations and member governance models of CO-OPs, including health care policy experts, administration officials and congressional staff, health care industry professionals, and employer groups and consumer advocates. For more information, visit