State officials say a health insurance carrier is leaving New Jersey’s health exchange marketplace created under the Affordable Care Act, or ACA.
Officials with Health Republic of New Jersey say the insurance co-op has been under “considerable financial strain” due to requirements under the ACA’s risk adjustment mandate. The program requires insurers with healthier and less expensive enrollees contribute to a fund that supports plans serving sicker and more expensive customers. Health Republic owes more than $46 million under the program this year.
The state Department of Banking and Insurance says Health Republic will serve customers through the end of 2016.
The move follows similar announcements earlier from Oscar Health Insurance and UnitedHealthcare. Consumers who buy health coverage through the state’s health exchange marketplace next year will have two options.
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