METAIRIE, La.--(BUSINESS WIRE)--Today, Louisiana Health Cooperative, Inc. (LAHC) announced that the company has voluntarily decided that it will not participate in the upcoming open enrollment period for policies effective January 1, 2016; but will continue to honor policies and protect lives through December 31, 2015, as it begins to cease operations. LAHC provides health insurance coverage to more than 16,000 Louisiana members and is committed to making this transition non-disruptive for all involved parties – members, providers, employees and brokers.
“LAHC has sustained itself over the last few years, but is not growing enough to maintain a healthy future. By proactively and voluntarily addressing our situation now, LAHC will be in a position to maintain all of its policies in force through the end of the year, and to cover all outstanding claims and operating expenses,” stated Greg Cromer, LAHC’s Chief Executive Officer. “We are committed to all of those impacted by this decision, and we have capital allocated to fulfill all financial obligations through and following the end of the year, including staffing, provider funds and our other obligations.”
LAHC is proactively working with the Center for Medicare & Medicaid Services (CMS) and the Louisiana Department of Insurance (LDI) to ensure that all required deadlines are maintained, specifically as the open enrollment period approaches. Members will have the opportunity to shop for new, 2016 health insurance coverage through Healthcare.gov during the upcoming annual open enrollment period and avoid any lapse in health insurance coverage.
Since the closure is voluntary and fully funded, it should have minimal impact to members and providers.
“We will continue to act as a protector to our members, providers and dedicated staff. Our priority is to continue to safeguard each group and create a seamless transition.” added Cromer. “There will be no lapse in coverage for members; all providers will be compensated as owed.”
About LAHC
LAHC is a nonprofit, locally managed and operated health insurance company. With offices in New Orleans and Baton Rouge, LAHC is a home-grown company that understands the distinct personality and needs of our community.
