It wouldn't be the first time a health insurance company shut down in response to regulation.
For example they're was a case in Ireland regarding the local arm of Bupa[0]. To condense a complicated saga, a regulation obliged them to pay competitors to compensate for the fact that their clientele were a better risk than the average consumer. They considered all the obvious options: appeal, loophole, sell the business, temporary government takeover, merge into a competitor.
In the end they did several of these and the Irish entity continues on as Laya, independent of the Bupa parent. At no point was it considered that people would lose cover, and in fact the regulator and government ensured that continuity of things like pre-existing conditions was covered so that the consumers weren't disadvantaged.
Of course Ireland and the EU don't operate exactly like the US. I only mean to say it's possible to go through this process without harming the healthcare outcomes (except by the unavoidable loss of competition among providers).
As an aside, it's pretty ludicrous that Community Rating is allowed to not be paid for the first three years of a company's operation, leads to shenanigans like this.
For example they're was a case in Ireland regarding the local arm of Bupa[0]. To condense a complicated saga, a regulation obliged them to pay competitors to compensate for the fact that their clientele were a better risk than the average consumer. They considered all the obvious options: appeal, loophole, sell the business, temporary government takeover, merge into a competitor.
In the end they did several of these and the Irish entity continues on as Laya, independent of the Bupa parent. At no point was it considered that people would lose cover, and in fact the regulator and government ensured that continuity of things like pre-existing conditions was covered so that the consumers weren't disadvantaged.
Of course Ireland and the EU don't operate exactly like the US. I only mean to say it's possible to go through this process without harming the healthcare outcomes (except by the unavoidable loss of competition among providers).