Health providers and insurers went before New York senators at a hearing Wednesday to address the failure of Health Republic Insurance of New York, a nonprofit insurance cooperative.
Here are five takeaways from the hearing.
1. The Greater New York Hospital Association and the Healthcare Association of New York State, both trade groups that advocate on behalf of hospitals and nursing homes, said their members are owed $165 million through the end of October, according to Crain's New York Business. They expect that number to reach $200 million.
2. Paul Macielak, president and CEO of the New York Health Plan Association, told senators the fact that Health Republic set its premiums well below its experienced competitors during its first year of operation "should have been a red flag," according to Crain's New York Business.
3. Troy Oechsner, the Department of Financial Services' deputy superintendent of health, said "serious concerns" were raised about the accuracy of Health Republic's financial reporting when an independent audit of Health Republic's finances was conducted in June 2015, according to Crain's New York Business. He added that Health Republic then had anticipated it would be able to pay its debts through the end of this year.
4. Insurers fault the DFS for lowering a premium rate increase that Health Republic requested, and are urging lawmakers to change how DFS looks at premiums, according to Crain's New York Business.
5. According to the Associated Press, Senate Insurance Committee Chairman James Seward said he'll again advance legislation that would create a more transparent insurance rate-setting process.
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