From the Associated Press (via Boulder Daily Camera): Colorado’s largest nonprofit health insurer went down swinging Monday, trying but failing to challenge a state decision to close it because of precarious finances.

Colorado HealthOP, a nonprofit insurer set up under the federal health care law, unsuccessfully challenged the decision in a closed-door, two-hour hearing.

Colorado HealthOP was told Friday by the state Division of Insurance to stop writing new policies. The announcement was a death knell for the largest company on the Colorado health insurance exchange.

Colorado HealthOP covers more than 80,000 people — about 40 percent of the entire exchange market. Many of its plans offered the lowest premiums in the market.

The company is the seventh such insurance co-op to collapse this year. Federal authorities announced last month that they would pay just a fraction of what was owed the insurance companies under a fund set up to stabilize the insurance market in the health law’s first few years.

Colorado HealthOP said it had a plan to turn a profit but was counting on government support as promised for the first few years. The cooperative had borrowed $72.3 million and reported a net loss of $23 million last year.

Colorado HealthOP CEO Julia Hutchins said after Monday’s unsuccessful challenge that she was barred by law from describing it.

“All we can say is, the conclusion of the hearing is that we agreed to work with the Division of Insurance to wind down the company,” Hutchins said.

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