September 3, 2015

Commissioner Donelon Addresses Payment of Healthcare Providers in La. Health Cooperative Network

Following a court order granting Insurance Commissioner Jim Donelon control of the Louisiana Health Cooperative (LAHC, aka the CO-OP) on Tuesday, September 1, he is reaching out to tens of thousands of healthcare providers—doctors, hospitals, clinics, pharmacists, and other providers—regarding the continued treatment of policyholders and the payment of their claims.

“The new management of the CO-OP will work tirelessly to ensure that the processing and payment of claims will speed up dramatically. All healthcare providers of the CO-OP need to know that their claims will be paid so that they will be comfortable in continuing to provide treatment to policyholders,” said Commissioner Donelon. “As the regulator of the insurance industry, I have authority to enforce contracts with outside vendors of defunct insurers, including vendors that process claims, and will do everything within my power to make sure that policyholders are served and providers are paid and paid faster, and that taxpayers can recover as much money as possible through judicious management of the CO-OP,” Commissioner Donelon said.

Commissioner Donelon and Court-appointed Receiver Billy Bostick have issued a communication to the tens of thousands of in-network providers of the CO-OP, assuring them of more efficiencies in administration and of the ability of the CO-OP to pay claims submitted by providers. In the event of a shortfall, the Centers for Medicare and Medicaid Services (CMS) can make available more than $9 million in additional funds to ensure the CO-OP’s legal obligations are satisfied. A series of town hall-style meetings for providers is also planned to impart information and assurance to providers about the ability of the CO-OP to satisfy provider claims.

Additional information can be found on the LDI website at Inquiries from providers, as well as policyholders, may be directed to [email protected] or by phone 504-383-7456.

To view the letter to providers, click here.

To view the Petition and Order of Rehabilitation and Injunctive Relief, please click here.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting