Vermont denied a license for a new health insurance company.
The Vermont Health Co-op opened for business last fall. The nonprofit company was created to take part in the new health care exchange under the federal Affordable Care Act. The federal law requires the co-op model to be offered in each state's exchange.
But the Department of Financial Regulation says it discovered several inadequacies, including questions about whether the co-op can remain solvent and repay federal loans.
State regulators also note that the co-op's rates are significantly higher than the two other insurance companies participating in the exchange, causing doubts about whether it can attract subscribers.