The collapse of Albany, N.Y.-based HealthRepublic has healthcare providers and insurance brokers looking for a cut of the state's $1 billion surplus to cover uncompensated care costs.
The New York Association of Health Underwriters — which represents more than 600 health insurance agents, brokers and general agents effected by the collapse — called on Gov. Andrew Cuomo and state lawmakers to allocate some of the state's excess funds to cover HealthRepublic's unpaid bills to providers and brokers.
Hospitals, physicians, medical groups and insurance agents performed millions of dollars in uncompensated care following the health insurer's demise. Hospitals are owed an estimated $160 million dollars, according to the Healthcare Association of New York. The state Medical Society places physician reimbursements in the tens of millions, according to WGRZ news.
In a statement, the Association of Health Underwriters said money from the state would help avoid problems usually associated with collapsed insurers. "What's needed is a solution that avoids the usual outcomes of a failed insurance carrier...without inflating future insurance premiums or increasing New York. resident's tax burden," the group wrote.
"Potential uses of settlement dollars will be considered as part of the executive budget process,” said Morris Peters, a spokesman for Gov. Cuomo’s budget division.
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