ALBUQUERQUE, N.M., Aug. 11, 2020 /PRNewswire/ -- The Board of Directors of the New Mexico Health Connections CO-OP has voted to cease operations beginning January 1, 2021. The Board also voted to continue serving members through the end of 2020 to ensure continuity of its current members' health insurance. Members will need to select a new 2021 health plan with another carrier during open the enrollment period, which begins November 1, 2020.
"It is with deep sadness that based on challenging market conditions, the Board made a painful decision to wind down operations of New Mexico Health Connections at the end of this year," said Marlene Baca, CEO & President, New Mexico Health Connections. "Rather than spending resources on next year's uncertain market, we would rather make sure we protect our current members."
New Mexico Health Connections is committed to honoring its individual plans throughout the 2020 plan year to avoid disruption to members and medical providers. By closing voluntarily, the health plan is able to ensure members may continue to see their plan doctors and claims will be paid under the plan terms. As always, members will need to pay monthly premiums in accordance with plan rules for their coverage to remain in effect for 2020.
"With continued high claims costs and limited opportunities for new investment, it has become clear that the amount of growth required to provide quality care at reasonable rates will be unlikely in the next plan year," said Baca. "New Mexico Health Connections is working responsibly and pro-actively with the Office of Superintendent of Insurance and the Centers for Medicare and Medicaid Services to ensure that we meet all deadlines and fulfill obligations to our current members."
The not-for-profit New Mexico Health Connections CO-OP was formed to provide a consumer-centered health insurance option in the New Mexico market. New Mexico Health Connections started enrolling members in 2014 and experienced significant growth. However, the company's Board concluded that future growth projections were not large enough to ensure continued successful operations.
About the CO-OP
The New Mexico Health Connections CO-OP was formed in 2012 and began providing coverage in 2014. New Mexico Health Connections' charge is to create more robust competition in the market to improve cost and delivery of health services across New Mexico communities.
SOURCE New Mexico Health Connections