Carson City, NV - September 25, 2015
On September 25, 2015, the Nevada Division of Insurance (“Division”) filed a petition in the Eighth Federal District Court in Clark County to place the Nevada Health CO-OP (NHC) into a conservation/rehabilitation receivership. If the Court grants the petition, the Commissioner of Insurance will become the Receiver of the insurance company.
Because of the financial challenges faced by the CO-OP due to a very competitive health insurance market, in August, the CO-OP voluntarily suspended the sale of its health insurance plans for the remainder of 2015 and 2016. It subsequently presented a wind down plan to the Division for review. This review has raised concerns about the CO-OP’s ability to successfully manage, account for, and meet its obligations through the end of 2015 on its own.
“This type of receivership will allow the Commissioner to formally oversee the CO-OP in the conservation of its assets, distribution of funds, and the further administration of its operations so that CO-OP members continue to receive the benefits of their plans,” said Acting Insurance Commissioner Amy Parks.
The CO-OP’s management is fully cooperating in this next step of the wrap up of its operations in its continuing goal to do what is in the best interests of its members. Members can still see their providers using their 2015 plan benefits and continue to get the healthcare they need.
You may check on the Nevada Division of Insurance website on Monday, September 28, 2015 to view a file stamped copy of the petition.
About the Nevada Division of Insurance
The State of Nevada Division of Insurance, a division of the Nevada Department of Business and Industry, protects the rights of Nevada consumers and regulates Nevada’s $11.9 billion insurance industry. The Division of Insurance has offices in Carson City and Las Vegas. In 2014, the Division investigated more than 2,800 consumer complaints and recovered nearly $4 million on behalf of consumers. For more information about the Division of Insurance, visit DOI.NV.GOV or download the Division’s smartphone app NDOI Connect today in the Apple App Store and Google Play.