Local MDs, State Officials Discuss Obamacare Insurer's Demise

The collapse of a New York health insurance co-op created under Obamacare left more than 200,000 policyholders scrambling and everyone pointing fingers.

One of the largest under New York’s marketplace -- because its premiums were so low -- Health Republic of New York was shut down in November by the state.

The Senate Standing Committee on Health and Insurance held a roundtable discussion Wednesday in Albany to discuss and examine issues relating to Health Republic’s recent demise and the State’s response to financially fragile insurers.

“Health Republic’s failure has impacted over 215,000 enrollees and countless providers. I firmly believe New York State has an obligation to ensure that health care providers are compensated for their services which ultimately leads to better health care for all.” said Senator Terrence Murphy.

Dr. Scott D. Hayworth, President and CEO of Mount Kisco Medical Group, was one of a select few experts from around the state invited to participate.

MKMG is a multi-specialty medical group in 40 different locations throughout Westchester, Putnam, Dutchess, Columbia and Ulster counties. The group has actively participated in New York State’s Exchange programs and the national Affordable Care Act.

MKMG has more than 13,000 patients with Health Republic coverage, representing more than 6 percent of Health Republic’s membership.

“With this level of membership, we have calculated that we will lose millions of dollars in revenue for services provided to Health Republic patients,” Hayworth said. “Insurance reimbursements from Health Republic are lost not only for doctor visits, but also for surgeries, supplies, vaccines and chemotherapies. Our physicians feel very frustrated and are concerned that other insurers might also fail, creating further instability in the market. Furthermore, recruitment of quality primary care physicians in New York State has become increasingly challenging. The failure of this plan as part of the NYS Exchange program seriously impedes the recruitment of the finest physicians to our state. New York State must secure funding to compensate providers for services delivered in good faith.”