Shuttered Utah health insurer has $33M in unpaid claims

Hospitals have about $33 million in outstanding claims with collapsed Utah insurance co-op Arches Health Plan, and the state department of insurance likely will not pay out on those claims until 2017, according to the Desert News.

Many Utah hospitals will be able to absorb the reimbursement shortfall. However, the unpaid claims could have a major impact on rural hospitals, causing some facilities to forgo clinical investments, according to the report.

Moab (Utah) Regional Hospital CEO Jennifer Sadoff told the Desert News that her 17-bed hospital had about $350,000 in outstanding claims with Arches when it shut down. "Although a one-time loss this size won't close our doors this year, a few years ago it very well could have," said Ms. Sadoff.

Like many other co-ops, the collapse of Arches was primarily attributable to a shortfall under the Affordable Care Act's risk corridor program.

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