“Since Obamacare’s rollout in the fall of 2013, 16 co-ops that launched with money from the federal government have collapsed.
The co-ops, or consumer operated and oriented plans, were started under the Affordable Care Act as a way to boost competition among insurers and expand the number of health insurance companies available to consumers living in rural areas.
Now, just seven co-ops—Wisconsin’s Common Ground Healthcare Cooperative; Maryland’s Evergreen Health Cooperative; Maine Community Health Options; Massachusetts’ Minuteman Health; Montana Health Cooperative; New Mexico Health Connections; and Health Republic Insurance of New Jersey—remain.”
“The Centers for Medicare and Medicaid Services awarded $2.4 billion to 23 co-ops that were eventually created. However, the majority of the co-ops struggled to turn a profit, resulting in the collapse of 16 of the original 23 that received $1.5 billion in startup and solvency loans.
Now, with just seven co-ops remaining, regulatory filings show that many ended 2015 in the red.”
“Since Obamacare’s implementation, it’s not only co-ops that have struggled to make money.
Oscar, a startup insurance company serving New York and New Jersey that launched in 2012, lost $105 million in 2015.
Additionally, UnitedHealth Group CEO Stephen Hemsley said the company expects to lose more than $1 billion from its exchange business—$650 million in 2016 and $475 million in 2015.
The company, which is the nation’s largest insurer, decided to pull out of at least 26 of the 34 exchanges it offered coverage on last year after warning the marketplaces were a risky investment.
And Health Care Service Corporation, which operates Blue Cross Blue Shield plans in five states, reported losses totaling $65.9 million in 2015. The company lost $281.9 million in 2014.” - 16 Obamacare Co-Ops Collapsed. Here’s How the Rest Are Faring, The Daily Signal, 07/26/2016
Link to the entire article appears below:
http://dailysignal.com/2016/07/26/16-obamacare-co-ops-collapsed-heres-how-the-rest-are-faring/?utm_source=TDS_Email&utm_medium=email&utm_campaign=MorningBell&mkt_tok=eyJpIjoiWlRCbU5qTXpNalJsTnpZMSIsInQiOiJodlpIdHFmVUJWeE9FZXJpR2g3XC9qN3lGWExTT3BGazduUjFydUg1QWREZHphakJLcjg5T3dWa3hXeTdDUGVrZThwZllUbjAxQXlGT25FYjBZTEhZSk5CV0RadXdtSmduME9Cd1RqMjdhdTA9In0%3D
“Ohio's Obamacare plan has closed up shop, making 13 out of 23 consumer-oriented-and-operated plans to shutter.
InHealth Mutual in Ohio will shut down and will force more than 20,000 people to choose new plans. They will have 60 days to find a new plan. Ohio's insurance regulator said Thursday that it had to take control of the co-op because of major losses.
The Ohio co-op is the first one this year to close. Last year, 12 of the 23 taxpayer-funded plans shut down due to mounting financial losses and a lack of federal funding.
Including InHealth, the federal government has spent $1.3 billion to set up the co-ops, which were created to offer more competition on Obamacare's exchanges.” - Ohio Obamacare co-op collapses, Washington Examiner, 05/26/2016
Link to the entire article appears below:
http://www.washingtonexaminer.com/ohio-obamacare-co-op-collapses/article/2592429
'A South Carolina health insurer has become the ninth insurance cooperative formed nationwide under the Affordable Care Act to fold.
Consumers' Choice Health Insurance Co. said Thursday that it will not sell policies in 2016, a decision that will leave 67,000 individuals and business customers looking for new coverage.
Ray Farmer, director of the South Carolina Department of Insurance, said Consumers' Choice and state regulators reached a mutual decision to shut down the company's business. He said the company was in a "financially hazardous condition."
"I did not have the confidence that this company would be a viable entity throughout the entire year of 2016," Farmer said.”' - Ninth cooperative formed under Affordable Care Act closing, AP, 10/22/2015
Link to the entire article appears below:
http://news.yahoo.com/ninth-cooperative-formed-under-affordable-care-act-closing-214059601.html
‘A Nevada health insurance provider that received more than $65 million in taxpayer-funded loans from the federal government announced last week that it is discontinuing operations at the end of the year.
The Nevada Health Co-Op will close its doors beginning Jan. 1 because of “challenging market conditions.” The co-op will be the third of the 23 consumer-oriented and operated plans created under Obamacare to shutter.’
‘The 23 co-ops received $2.5 billion in loans from the Centers for Medicare and Medicaid Services to help get off the ground and remain solvent. The federal government awarded the Nevada Health Co-Op $65.9 million in startup loans. It’s unclear whether the co-op will be able to repay the loans.
According to the Nevada Health Co-Op, it enrolled 14,000 consumers in 2014. However, the nonprofit insurer projected it would enroll 33,748, according to a July audit of co-ops from the Department of Health and Human Services inspector general.’
‘The analysis from the Department of Health and Human Services also found that the Nevada Health Co-Op projected that it would make $371,000 in 2014. However, it lost more than $15 million.’ - This Obamacare Co-Op Was Supposed to Make Money. Instead, It Lost Over $15 Million, 08/31/2015, dailysignal.com
Link to the entire article appears below:
http://dailysignal.com/2015/08/31/this-obamacare-co-op-was-supposed-to-make-money-instead-it-lost-over-15-million/?utm_source=heritagefoundation&utm_medium=email&utm_campaign=morningbell&mkt_tok=3RkMMJWWfF9wsRohvq3OZKXonjHpfsX56OgvWa%2BylMI%2F0ER3fOvrPUfGjI4ATMpnMK%2BTFAwTG5toziV8R7jHKM1t0sEQWBHm
“More than 500,000 people enrolled in health plans offered by nonprofit insurance companies created under the Affordable Care Act.
And with the co-ops receiving an average of $108.7 million from the federal government, taxpayer-backed funding per enrollee topped $17,000.
Twenty-three co-ops received a total of $2.5 billion from the federal government and enrolled more than 520,000 people in plans through September. However, an analysis conducted by The Daily Signal published yesterday found that just one, Maine Community Health Options, was profitable last year.
Using the latest quarterly filings for 22 co-ops, The Daily Signal examined how much money (in federal dollars) co-ops received per consumer who enrolled in a group or individual plan. On average, each co-op received $17,344 from the Centers for Medicare and Medicaid Services per enrollee. Data for New Jersey’s co-op, Health Republic Insurance of New Jersey, was not available.” - Obamacare Co-Ops Cost Taxpayers $17,000 Per Enrollee, dailysignal.com, 02/11/2015
Link to the entire article appears below:
http://dailysignal.com/2015/02/11/much-taxpayer-money-obamacare-co-op-receive-per-enrollee/?utm_source=heritagefoundation&utm_medium=email&utm_campaign=morningbell&mkt_tok=3RkMMJWWfF9wsRoiu6zBZKXonjHpfsX56OgvWa%2BylMI%2F0ER3fOvrPUfGjI4ESsNrI%2BSLDwEYGJlv6SgFQrLBMa1ozrgOWxU%3D
