After the demise of the state health exchange co-op Health Republic last, Sen. David Valesky has introduced a bill that would create a security fund that is aimed at having medical bills paid even if an insurance company becomes insolvent.

“New York State is the only state in the nation that doesn’t protect healthcare consumers in the event their insurance provider folds,” Valesky said in a statement. “After Health Republic collapsed, it was a hard pill to swallow for so many of its enrollees who had outstanding bills and were left without insurance. It was equally difficult for providers who offered care and were left with a trail of unpaid bills. This fund will ensure that even if an insurer falls financially ill, our consumers and providers remain well.”

The measure would create what’s known as a guaranty fund that would be financed through a one-time assessment on health insurers. The creation of a guaranty fund would make New York the last state to have one in place.

The proposal would have providers be barred from passing the cost onto insurance policyholders.

At the same time, the Department of Financial Services superintendent would be allowed to assess the financial stability of an insurer and adjust or suspend the fee for the fund.

Health Republic folded late last year, which left 200,000 patients initially uninsured and an estimated $200 million in outstanding bills for hospital and health-care providers. The company had planned to make modest payments, but those have been discontinued.