Colorado’s attorney general has given her blessing to of Rocky Mountain Health Plans, a Western Slope insurer, to UnitedHealthcare.
In an opinion issued Thursday, Attorney General Cynthia Coffman wrote that she had concluded the sale can proceed legally. Rocky Mountain Health Plans is a nonprofit, and the sale will require it to convert to a for-profit company and leave the proceeds of the sale — some $36 million, according to Coffman’s opinion — to the Rocky Mountain Health Plans Foundation, which will use that money for charitable projects on the Western Slope.
Coffman’s analysis found that the sale amount represents a fair market value for the insurer. It also concludes that Rocky Mountain Health Plans likely couldn’t survive without the sale — noting that the company has been losing money for three years.
The state Division of Insurance . So far, one division official has concluded that the sale among carriers.
Rocky Mountain Health Plans currently sells individual insurance plans on the state’s Affordable Care Act exchange . But it of the state’s Medicaid market. UnitedHealthcare is one of the largest insurers in the state but doesn’t currently sell plans on the exchange.