NASHCO Statement on Louisiana Health Cooperative’s Announcement that It Will No Longer Offer Plans after 2015

July 27, 2015


WASHINGTON, DC – Kelly Crowe, Chief Executive Officer of the National Alliance of State Health CO-OPs (NASHCO), made the following statement regarding news that Louisiana Health Cooperative (LAHC) will cease to offer plans after 2015.


“The fact that Louisiana Health Cooperative will not offer plans for 2016 and begin to cease operations at the end of the year does not detract from the very real contributions CO-OPs are providing across the country. Indeed, without the presence of a CO-OP, many already concentrated health insurance markets would have very little in the way of choice and competition – a key promise of the Affordable Care Act.


“Though losing a member is never easy, it’s noteworthy that Louisiana Health Cooperative is making this choice on its own accord, and doing so in a way and at a time that minimizes impacts to its policyholders, providers, and the state and federal governments. LAHC is making a responsible decision based on its own specific situation and in response to a challenging environment in Louisiana.


“Moving forward, it’s worth reiterating that no one predicted that every CO-OP would ultimately succeed in the long run. Such an expectation would be unrealistic in an industry as challenging as health care, where nearly 50% of start-ups do not make it past their early years of existence. However, many CO-OPs are meeting their growth projections and providing a new form of high quality and affordable health insurance to those who need it most.


“While all insurers are dealing with a rapidly changing health insurance marketplace, as new entrants, CO-OPs face unique challenges. Moving forward, NASHCO will work to ensure that every available tool is utilized to give our member CO-OPs the best chance for future success.”