Market-leading Insurer Succumbs to Red Ink

With about 200,000 members, Health Republic has around one out of five enrollees in the New York State of Health, the state's private insurance exchange — more than veteran insurers such as Empire Blue Cross and Emblem Health. The federally-subsidized, nonprofit startup lured in customers with some of the state's lowest prices and access to a relatively broad network of doctors and hospitals. 

But there hasn't been strength in numbers, and premiums haven't kept pace with medical bills. 

With open enrollment for 2016 beginning on Nov. 1, state and federal government have told Health Republic to close.

“Given Health Republic's financial situation, commencing an orderly wind down process before the upcoming open enrollment period is the best course of action to protect consumers," said Anthony J. Albanese, Acting Superintendent of Financial Services. "Moving forward, we will work closely with New York State of Health and federal regulators to help ensure continuity of coverage for Health Republic's customers.”

People insured by the group will be covered through the end of the year, but will need to find a new health plan in order to remain covered next year.