Community Health Alliance (CHA), based in Knoxville, TN, was awarded status as a Consumer Oriented and Operated Plan (CO-OP) by the U.S. Department of Health and Human Services in August, 2012.
The company was established as a private, non-profit mutual insurance company. CO-OPs were created as part of the Affordable Care Act to provide consumers and employers with a not-for-profit, consumer-focused health plan alternative that could compete fairly with other insurance companies. In order for an organization to keep its CO-OP designation, it was required to return value and profit back to subscribers in the form of consumer-friendly plans, reduced premiums and/or expanded services.
CHA drew funding from its loan agreement, developed operations during 2012 and 2013, and began providing health coverage in January 2014. In mid-October 2015, CHA voluntarily entered state-approved wind down and runoff after careful analysis of its current and future financial condition and lengthy discussions involving the Centers for Medicare & Medicaid Services and the Tennessee Department of Commerce & Insurance (TDCI). The decision to wind down and run off its business meant CHA would not offer plans for 2016 and any policies still in effect would terminate at the end of 2015.
CHA has developed an extensive wind down plan and has runoff procedures in place with the primary objective being to pay all policyholder claims in full. Following completion of an orderly wind down and runoff under administrative supervision of the TDCI, CHA intends to remit unused loan funds toward payment of the loans.