Monday, July 24, 2017

Interesting RC Twist

No, not that RC; RC as in Risk Corridor. Regular readers may recall that these were payments promised to insurers to help mitigate the extraordinary claims wrought by ObamaPlans, and which were woefully underfunded.

Back in 2015, HealthyCT (that state's now-defunct Co-Op) received "more than $128 million and covered only 6,094 people – more than $21,000 per enrollee." And that still wasn't enough: they went under last summer.

But in a surprising (well, to me) development, Juris Capital (a "litigation funding firm ") is offering to infuse over $10 million "to the estate of HealthyCT." First, I've never heard the term "estate of" used in the context of an insurance company, but it really does work, no?

And second, why they're throwing money down that particular hole is pretty interesting, as well: the failed insurer is still due over $30 million in RC funds; if those actually come through, well, nice payday for Juris Capital (of course, that's a big "if").

And they're at the mercy of two different government entities: Constitution State insurance regulators who are suing the Feds. Not an appealing notion, but best of luck to Juris Cap.
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