Effective Friday 9/25/15 the NYDFS (NY dept of financial services) has directed Health Republic to cease writing new health insurance policies and to commence an
orderly wind-down after existing policies expire. They are only in their 2nd year of existence and are the first casualty of the new Obama care era. What does this mean for concerned policyholders?
- For individuals: All policies will run through 12/31/15. That means all individuals will need to initiate changing companies by the middle of December at the latest.
- For small groups: NYDFS and Health Republic will be releasing guidance shortly concerning small group products.
To read the notice www.dfs.ny.gov/about/press/pr1509251.htm
The Insurance Doctor says: The state claims Health Republic is insolvent and didn’t keep enough in reserves. Health Republic says the Obama care state guidelines are too strict to make money. We feel a combination of both are true and that their rates were too low to earn profits.
Avoid this situation entirely and switch out of Health Republic as soon as possible! Trying to squeeze claim monies from a company going under is a tough task should you be unfortunate to get sick between now and year end.
Feel free to contact us for plan options as we are booking appointments for Health Republic policy owners starting the week of 10/12/15.