A lack of federal funding from the Obama administration has caused the 10th taxpayer-funded Obamacare insurance startup to close.
Utah’s insurance regulator announced Tuesday that it will place Arches Health Plan in receivership. The reason is due to a small amount of funding from a federal program intended to help buttress insurers that offer plans in the Obamacare marketplaces.
The decision by the Utah Insurance Department allows the regulator to supervise the runoff of its policies. The department says Arches’ customers should call their insurance agent or use healthcare.gov when open enrollment starts Nov. 1.
Utah lays the blame on a shortfall from Obamacare’s risk corridor program. The program was intended to help Obamacare insurers if they took on too many sick and older Americans.
The program was meant to help mitigate some of the risk of joining the completely new Obamacare marketplaces.