Report: State errors led to insurer’s collapse

Today the Empire Center released a report that concludes that the recent collapse of Health Republic (the health insurance co-op established under the ACA) which disrupted coverage for 215,000 New Yorkers, was a result, in large-part, to failures by the state and the Department of Financial Services (DFS). The report states that DFS took no obvious steps to address serious and glaring financial problems at Health Republic and instead used its regulatory power of prior-approval of health premiums to further lower Health Republic’s inadequate premiums.

Consistent with the position that The Business Council has often opined, the report concludes that DFS needs to concentrate more on plan solvency. We believe the goal of making health coverage more affordable is best achieved by the removal of high taxes and unfunded mandates, rather than the imposition of price controls through a politicized prior-approval regime. The Empire Center’s report can be found The Empire Center’s report can be found here.