With healthcare reform at a standstill, some people just aren't going to wait around for everything to be solved. These people include the administration of New York State's biggest hospital system as Northwell Health hospital system ends its partnership with CareConnect Insurance Co. An insurance division in New York that insures about 126,000 New Yorkers, who will now have to seek health insurance coverage elsewhere.
What is the cause of this fall out?
Well, according to Michael J. Dowling, the CEO of Northwell, CareConnect had been unable to turn a profit and had suffered considerable losses. These losses were consequences of the onogoing ACA and its ill-designed components.
One being requirement of "risk adjustment", a requirement to insure a sicker population, causing CareConnect to contribute $12 million in 2016 and leaving a 44-percent dent in revenue.
If this wasn't enough, a successful push by Republican caused a new law to be created. A new law that reduced the reimbursements of insurance companies, reimbursements that would have lowered the prices of plans to attract new clients.
With all this being said, Northwell came to the conclusion to end their relationship with CareConnect.
As you can see, times are uncertain now with healthcare reform. Stick with Cosmo Insurance Agency and we will be able to be your guiding light through these rough times. We partner with over 16 reputable insurance carriers and have a team of professional and knowledgeable insurance brokers that will help you through every step of the way.