Tag: Co-Ops

Thanks Barack… Federal Government Flushed $1.2B Down Failed ObamaCare CO-OPs

Feds Flushed $1.2 Billion Down Failed ObamaCare CO-OPs – Moonbattery

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The long election season that has already degenerated into a circus is a boon for Democrats. It keeps most people distracted from how ObamaCare is unfolding:
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More than half of the government-funded nonprofit health insurers created by Obamacare have failed, sticking taxpayers with a $1.2 billion tab and leaving hundreds of thousands of people in more than a dozen states scrambling for medical coverage, a new federal audit reveals. The nonprofit insurers are known as Consumer Operated and Oriented Plan Program (CO-OP) and the Department of Health and Human Services (HHS) has pumped $2.4 billion into them under the president’s hostile takeover of the nation’s healthcare system.

Congress initially allocated $6 billion for the Obamacare CO-OP program, with the goal of establishing CO-OPs in all 50 states as well as the District of Columbia. Thankfully, subsequent legislation slashed funding for the ill-fated experiment. In all, HHS has funded 23 of these dubious enterprises and 12 have already gone under after losing an astounding $1.2 billion that’s unlikely to ever be recovered. As a result 740,000 people in 14 states must search for new medical coverage they thought they had under the disastrous Obamacare plan. Every resident of the United States who pays taxes should be outraged by this monstrous failure, exposed in great detail in a scathing report published by the Senate Homeland Security and Governmental Affairs Committee. The committee’s probe reveals that, even when the CO-OPs showed clear signs of financial failure, HHS kept giving them huge amounts of money in the form of “loans” the agency knew would never be repaid.

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Statists believe that anything can be made to work if you infuse it with enough of other people’s money. But as Margaret Thatcher observed, eventually you run out of that.

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11 Of 23 Obamacare Co-Ops Have Collapsed, Leaving Half A Million More Americans Without Health Insurance

Obamacare Doomsday? ‘Collapses’ Drop Half-Million Americans – WorldNetDaily

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About half of Obamacare’s Consumer Operated and Oriented Plans, or co-ops, have imploded, leaving nearly half-a-million Americans looking for new health coverage.

And instead of addressing the problem, the Obama administration is pretending it doesn’t exist.

That’s the assessment of Rep. Adrian Smith, R-Neb., a member of the House Ways and Means Committee who recently wrote about the spate of failures in the Wall Street Journal.

“When it passed Congress in 2010, the Affordable Care Act offered substantial financial support to create nonprofit health-insurance plans. Today 11 of the 23 such regional Consumer Operated and Oriented Plans have failed – seven since the beginning of October,” Smith wrote.

“They’ve collapsed despite federal startup loans totaling more than $1.1 billion. These loans will likely never be fully repaid, while insurers and consumers will be on the hook for any unpaid claims left behind by failed insurers,” he added.

The congressman estimates 400,00-500,000 Americans lost their coverage in those 11 failed co-ops.

In an interview with Radio America, Smith says the co-ops were doomed from the start.

“I think they were improperly structured. They were allowed to charge too low a premium, not reflecting the actual costs. They thought the original subsidies – or loans if you will, but let’s face it, they’re subsidies, especially since they’re so unlikely to be repaid. That wasn’t enough,” said Smith, who is fuming more as he learns how these collapses transpired.

“The more I am learning about this entire situation, the more offensive it is, and this is just one part of Obamacare,” Smith said.

The congressman said what galls him most is that the government forced many people out of coverage they liked and then left those same people out in the cold.

“The thing that bothers me the most is when a good, upstanding citizen is doing everything they’re supposed to do to be a responsible individual,” Smith said. “Yet they are faced with canceled coverage, or they’re faced with a penalty for taking care of themselves.”

Adding to Smith’s frustrations is what he believes is utter indifference to the problem from the Obama administration.

“We had a hearing earlier this week, and the chief of staff from [the Centers of Medicare and Medicaid Services] was our witness,” Smith said. “[Dr. Mandy Cohen] sent the message that everything is just fine in the Obamacare co-op arena.”

He said it’s quite obvious that co-ops are not “just fine.”

“It’s not a win,” Smith said. “Nearly half of the co-ops have collapsed and that’s from New York to Nevada. Ours, with Nebraska and Iowa together, we were the first to collapse a year ago. Now we see them collapsing at a much quicker pace.”

How can the Department of Health and Human Services, or HHS, say all is well when almost half the co-ops have failed?

“In a very dismissive manner, I have to say, and it’s disappointing,” Smith said. “I started asking questions almost a year ago and HHS is not offering any answers.”

Not only is the government doing little to help, in some circumstances it is actually pushing co-ops to their deaths.

“The administrators of the Nebraska-Iowa plan saw a larger number of people sign up for their plan than they originally anticipated,” Smith said. “So they requested permission from HHS to suspend enrollment, to basically cap that at a number they figured was more manageable. They were prohibited by HHS from capping the number of enrollees.”

The congressman said that hastened the demise of the Nebraska-Iowa co-op. He said HHS did give permission for the Tennessee co-op to cap enrollment, but it collapsed anyway.

In the meantime, Smith is sponsoring legislation that would protect those who lost coverage with the failure of the co-ops from being fined by the IRS for not having coverage as mandated by federal law.

He believes all of Obamacare will eventually crater, but he hopes too many people aren’t hurt in the process.

“Ultimately, I think it collapses under its own weight,” he said. “I just want to do everything I can to minimize the damage in the ensuing time. That’s what weighs heavy on my mind is that the heavy hand of the federal government is actually hurting the very people Barack Obama was saying he was wanting to help.”

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Leftist Failure Update: One-Third Of Obamacare CO-OPs Are Now Officially Dead

One-Third Of Obamacare CO-OPs Are Now Officially Dead – Daily Caller

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One-third of the Obamacare health insurance co-ops have now failed, causing about 400,000 policyholders in 10 states to scramble for new coverage for 2016.

Seven of the 23 co-ops created by the Affordable Care Act in 2011 at a cost of $2.4 billion – including many launched by passionate but inexperienced health reform activists – have since closed their doors. An eighth, the Colorado Health Insurance Cooperative, appears on the brink of default as well.

The failing Obamacare co-ops have canceled health insurance for largely poor and low-income customers in Iowa, Nebraska, Kentucky, West Virginia, Louisiana, Nevada, Tennessee, Vermont, New York and Colorado.

The co-op’s are falling like dominoes. In the last two months, the public has seen co-ops fail in Nevada, Louisiana, Tennessee, Kentucky and New York.

Including Colorado, taxpayers have lost $876 million in loan money that was supposed to last for 15 years. The failed co-op’s existed for only two years before suddenly closing their doors.

More co-op failures are expected. “There will be more closures,” said American Enterprise Institute resident fellow Thomas Miller, a health care expert. “The only question is when rather than whether.”

The Center for Medicare and Medicaid Services, which funded the co–ops, said this summer that six co-ops were under “enhanced oversight” because of poor financial reports. The Daily Caller reported in August that federal officials refused to identify the six that are in trouble.

The Inspector General of the U.S. Department of Health and Human Services reported in July that 21 of 23 operating co-ops faced staggering losses, some greater than the loans that were expected to last 15 years.

New York’s Health Republic, the largest of the co-ops, announced it was closing its doors last month, leaving 155,000 customers in the lurch.

The New York failure was not only the largest, but was the flagship of the co-op movement. It was created by liberal political activist Sarah Horowitz, who had previously worked with then-state Sen. Barack Obama.

The New York Department of Finance Services last month reported that Health Republic had the worst 2014 consumer record of all insurance companies operating in the state.

Horowitz was the only individual to be given federal loans to run three co-ops at the same time. Her other two co-ops are in New Jersey and Oregon.

Miller said there is growing apprehension among state insurance commissioners about the solvency of many of the other co-ops still hanging on.

Nov. 1 is the new date for open enrollment for the co-ops. The deadline is forcing state insurance commissioners to take a closer look at the co-0p’s prospects over the next year.

Miller said many state commissioners are asking, “do you cut your losses now or do it later? There’s a lot of apprehension among state regulators in terms of signing up for another year in light of results that have happened.”

Sally Pipes, president of the Pacific Research Institute think tank, said, “everything is coming to pass. It was inevitable, given their inexperience.”

Kelly Crowe, CEO of the trade association that represents all of the co-ops has now turned against the Obama administration, which set up the programs.

She blamed “regulatory obstacles,” and said Obamacare – is “not working.”

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Leftist Nightmare Update: 22 Of 23 Taxpayer-Funded Obamacare Co-Ops Lost Money In 2014

22 Of 23 Taxpayer-Backed Obamacare Co-Ops Lost Money In 2014, Audit Finds – Daily Signal

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A new report from a government watchdog examining the success of taxpayer-funded Obamacare co-ops found that the vast majority lost money last year and struggled to enroll consumers, throwing their ability to repay the taxpayer-funded loans into question.

According to the audit from the Department of Health and Human Services’ inspector general, 22 of the 23 co-ops created under the Affordable Care Act experienced net losses through the end of 2014. Additionally, 13 of the 23 nonprofit insurers enrolled significantly less people than projected.

Co-ops, or consumer-oriented and operated plans, are nonprofit insurance companies created under Obamacare. Co-ops exist in a variety of capacities, and lawmakers hoped the entities would foster competition in areas where few insurance options were available.

The co-ops received $2 billion in loans from the Centers for Medicare and Medicaid Services to assist in their launch and solvency. However, the government watchdog warned that repayment may not be possible.

“The low enrollment and net losses might limit the ability of some co-ops to repay startup and solvency loans and to remain viable and sustainable,” the report said.

Andy Slavitt, head of the Centers for Medicare and Medicaid Services, attributed the co-ops’ financial losses to the difficulties of moving into a new market.

“The co-ops enter the health insurance market with a number of challenges, [from] building a provider network to pricing premiums that will sustain the business for the long term,” he said. “As with any new set of business ventures, it is expected that some co-ops will be more successful than others.”

Roughly half of the nonprofit co-ops struggled to enroll consumers, and the vast majority experienced significant losses in 2014.

According to the Department of Health and Human Services’ inspector general report, Arizona’s co-op, Meritus Health Partners, saw the lowest enrollment when compared with its projections. Through the end of 2014, the insurer enrolled just 869 Arizona consumers, compared with its projected enrollment of 23,998.

By contrast, New York far surpassed its enrollment projections. As of Dec. 31, Health Republic Insurance of New York signed up 155,402 people. It expected to enroll 30,864.

Additionally, 22 of the 23 co-ops experienced net losses as of Dec. 31, with the exception of Maine Community Health Options, which was profitable.

Just two insurance companies, including the co-op, offered plans on the federal exchange in Maine. Maine Community Health Options offered the lowest-priced coverage and enrolled 80 percent of marketplace consumers in the state, according to the inspector general.

In South Carolina, Consumers’ Choice Health Insurance Company exceeded profitability projections as of the end of 2014. However, the co-op still incurred net losses of $3.8 million. It expected a net income loss of $8.1 million.

Information regarding income for the co-op serving Iowa and Nebraska, CoOportunity, was not available, as the insurer was liquidated in March. CoOportunity received $145.3 million from the federal government in startup and solvency loans.

The report from the Department of Health and Human Services watchdog came after Louisiana’s co-op, Louisiana Health Cooperative, Inc., announced last week it would be discontinuing operations at the end of the year. The nonprofit insurer projected to enroll 28,106 Louisiana consumers in 2014 but signed up just 9,980 through the federal marketplace.

Additionally, Louisiana Health Cooperative incurred $20.6 million in net losses as of Dec. 31.

Similarly, Tennessee’s co-op, Community Health Alliance Mutual Insurance Company, froze enrollment during Obamacare’s second open enrollment period, which began in October. The co-op cited its financial conditions as a reason for its enrollment freeze.

According to the inspector general’s report, the Centers for Medicaid and Medicare Services placed four co-ops on “enhanced oversight and corrective action plans.” Two were put on notice for low enrollment.

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