Land of Lincoln Health, an Illinois based insurer that entered the market via the ACA, is facing the threat of a mid-year liquidation due to financial woes. The Illinois Department of insurance has ordered the nonprofit to stop renewing policies for small and large businesses and not to pay a $31.8 million risk adjustment payment owed to the federal government in an effort to avoid the closure of LOL and protect the plans current 49,000 enrollees. In June 2016, LOL sued the federal government for $73 million contending that is the amount owed to them via the risk corridor program of the ACA. In 2015, LOL lost $90 million and has reported another $17 million in losses through May 2016. (Crain’s Chicago Business, July 5, 2016).
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