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Federal Marketplace Co-Op Suspended in Arizona

Lucy Nicholson/Reuters/Newscom

About a third of the Arizonans who bought health insurance on the federal marketplace for 2015 will have to find a new provider following action by state insurance regulators to suspend the state's nonprofit insurance co-op's ability to sell new policies.

The suspension of Meritus Health Partners means about 59,000 people will need new insurance.

Groups that work to help enroll people in health plans said Monday the decision's timing at the start of yearly open enrollment should lessen the impact. That's because all customers buying plans should be checking again anyway because prices and plans can changes every year.

The average person who switched plans last year saved $507.

The Department of Insurance suspended Meritus from selling or renewing policies on Friday because of concerns it could fail.

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