The Vermont Health Co-op is no more.

Four months after state regulators denied the nonprofit’s application to sell health insurance on the forthcoming exchange, the federal government pulled its funding Monday and ordered it to close. The co-op’s board subsequently voted to dissolve itself, CEO Christine Oliver said late that evening.

“Without the financial support of our federal partners, it will not be possible to offer Vermonters the member-owned and member-governed health insurance option that will be available to Americans in many other states,” Oliver said in a written statement.

Founded 15 months ago, the co-op sought to provide a third option for Vermonters slated to buy health insurance through the federally mandated health insurance exchange come January. But the South Burlington-based nonprofit’s plans were derailed in May when the state Department of Financial Regulation denied its application to participate in the exchange.

Paul Heintz was part of the Seven Days news team from 2012 to 2020. He served as political editor and wrote the "Fair Game" political column before becoming a staff writer.

One reply on “After Feds Pull Funding, Vermont Health Co-op Folds”

  1. Sounds like it was pretty much justified and certainly raised some serious ethical questions. Nice to see someone in state gov’t make a well thought out and reasoned decision. Could we get Donegan on the Public Service Board please?
    Besides what’s the point really… Shummy and the Legislature will be instituting their single payer plan in 2017 so this entity would really only function for 3 years. Then what would happen to the rates payed and the loans given out… Probably would end up being a retirement compensation package for the CEO.

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