The Newark, N.J., insurer lost $58.96 million in the six months ended June 30 and is expected to have a negative cash position of $17.3 million in January, according to the department's petition for a takeover filed Monday in the Chancery Division of the Superior Court of New Jersey.
This year Health Republic tapped the last $10 million of a $94.3 million loan from the federal Centers for Medicare and Medicaid Services, the petition said. That loan was supposed to provide a capital cushion for the start-up.
Before the Health Republic announcement, 16 of the 23 co-op plans had failed nationwide, as losses mounted.
As long as individual and small-group policyholders continue to make their premium payments, their coverage will remain in effect until Dec. 31, but they must choose new coverage to take effect after that, the banking and insurance department said.