The Iowa Insurance Division is strongly urging that CoOportunity Health insurance policyholders who have not yet switched to a different carrier act immediately to secure new health insurance coverage, prior to the Feb. 15 open enrollment deadline.

In a release on Wednesday, Iowa Insurance Commissioner Nick Gerhart said it’s unclear what level of services may be available to assist any remaining policyholders after the company is liquidated.

It’s also unknown whether Iowa residents who don’t secure other coverage now will be able to find a carrier to replace their coverage following CoOportunity’s liquidation, Gerhart said.

Although there will be a 60-day special enrollment period after the remaining policies are cancelled and the state guaranty fund kicks in, insurers aren’t required to sell policies outside of the open enrollment period, so no plans may be available, Gerhart said. In that instance, individuals without coverage would be subject to federal penalties for not having health insurance.

As of today 7,047 Iowa residents were still enrolled with CoOportunity Health, the division said. The majority of those – more than 4,200 – are members of group health plans, and the remainder have individual policies. The number of policyholders still with CoOportunity is much higher in Nebraska, where more than 24,800 people have not switched to other carriers.

“While I sympathize with the financial burden facing some Iowans who already have made contributions towards the deductible amounts under their CoOportunity Health insurance policies, I encourage them to talk to a licensed insurance agent immediately,” Gerhart said in the release.

Gerhart anticipates that a court order will be issued soon that will place CoOportunity Health into liquidation effective Feb. 28.  Among the specific consequences of that order for those who have not switched from CoOportunity prior to Feb. 15:

• Federal tax credit benefits for CoOportunity Health plans will expire because the plans will no longer be Qualified Health Plans under the Patient Protection and Affordable Care Act.
• Individual health policies will be canceled 180 days after liquidation, and group health insurance policies will be canceled within 30 to 45 days after liquidation.
• Although Iowans will be protected upon liquidation through the Iowa Life and Health Guaranty Association, the coverage provided has a limit of $500,000 per individual, which could be consumed by one serious accident or illness.
• Individuals who been covered under a CoOportunity Health insurance policy and have satisfied any of their deductible amounts under those policies will not get credit toward the new deductible amounts under any new policies.