Tennessee health insurance co-op faces complaints from consumers

Tennessee Health Insurance

Tennessee consumers are having problems with the state’s health insurance co-op, Community Health Alliance

Tennessee’s Community Health Alliance, a health insurance co-op operating in the state, has become the subject of complaints being issued to the Tennessee Department of Commerce and Insurance. Now, the state agency is looking to hear from more people that may have had problems with the co-op in an effort to determine how outstanding problems can be resolved. At the end of the year, the co-op is expected to shut down, which will leave some 27,000 consumers without health insurance coverage.

State agency is looking for more information concerning those having trouble with insurance co-op

The Department of Commerce and Insurance has been receiving complaints from consumers claiming that their coverage through Community Health Alliance is being denied. Health care providers are denying this coverage as well, but Covenant Healthcare, which operates in the eastern part of the state where most of the consumer complaints are coming from, notes that it continues to honor those with policies from Community Health Alliance.

Co-op’s financial concerns may be part of the reason coverage is being denied in the state

Tennessee Health InsuranceSome are expressing concern that financial problems with the co-op may be one of the reasons behind denied claims and coverage. Community Health Alliance has noted, however, that it is not facing bankruptcy and will continue to pay claims as they are filed and approved. Co-op officials suggest that the organization going bankrupt is a problematic rumor which may be affecting the willingness of health care providers to accept coverage from the co-op.

Co-op is voluntarily closing down following the assessment of state agency

In October of this year, Community Health Alliance announced that it would be closing down voluntarily. This followed an assessment from the state’s Department of Commerce and Insurance, which found that the co-op was not in a financial position to continue providing effective services. As a result, the co-op is not accepting new policyholders and will not be renewing existing policies. The organization will, however, continue serving existing policies until the end of this year.

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