Utah Co-op Collapse Blamed on Lack of ‘risk corridor’ Payments
“Arches’ collapse comes after CMS announced earlier this month that it would only be able to cover 12.6% of claims made by insurance companies under the risk corridors program. Risk corridors collected money from insurers who made unexpected profits and paid it out to those who had unexpected losses. But the program only took in $362 million and was asked to pay out $2.87 billion.
Tricia Schumann, Arches’ communications officer, told the Deseret News, “We stood to benefit by our calculations in excess of $30 million for those ‘risk corridor’ payments. We did anticipate those cash payments coming in … this quarter.”