Kentucky Health Cooperative liquidated to pay claims
The state department of insurance is selling assets of the failed Kentucky Health Cooperative to satisfy its debts.
The nonprofit insurance cooperative sold insurance policies on kynect, Kentucky’s health insurance exchange. But it shut down in October after it was denied a federal loan.
About 51,000 people had insurance through the cooperative, and many health care providers are still waiting to be paid. Money from the sale of the assets will be used to pay claims submitted by in-network providers. Policyholders who used out-of-network providers could be responsible for outstanding charges.
The process could take years to resolve and is overseen by the Franklin Circuit Court. The Kentucky Department of Insurance says it’ll attempt to pay all claims in full, it is possible some will be paid at a reduced rate or not at all.