Two More Obamacare Co-Ops Fail

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In practice, the 23 co-ops have faced major financial struggles, with a federal audit released in August finding that 22 of them were losing money. Tennessee’s Community Health Alliance lost $22 million in 2014. It failed even though the Department of Health and Human Services allowed it to raise insurance rates by 44 percent — “the largest rate hike for an insurance carrier,” according to The Tennessean. Kentucky, which has 51,000 enrollees, announced last week that its co-op was going under. “In plainest language, things have come up short of where they need to be,” its interim CEO Glenn Jennings said on Friday.
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Ref: National Review

That's number 5 and 6 of 23 Obamacare Co-Ops which have now failed. The original co-ops were funded with Federal Loans, i.e. taxpayer monies. They have charged too little to cover costs so they have lost money. Some of them have raised rates significantly - see Tennessee in quote above - but if they raise rates they lose customers. [See "The Effects of Pricing on Supply and Demand" in any freshman economics text to understand why. The Federal Government which loaned over $2-billion to the failing co-ops apparently does not understand freshman economics, . . . or doesn't care.]

Today Republican Nebraska Senator Ben Sasse announced that he will block two of President Obama’s top nominees to the U.S. Department of Health and Human Services until there is a “complete and transparent accounting” of the financial crises that have led to the Obamacare co-op meltdown.
Rumors persist that 10 or 11 of the remaining co-ops are likely to go bust before this year is out.

DonDiego suggests all but the most optimistic reader of this post just assume the $2-billion in loans are gone.

Oh and the co-op collapse also means hundreds-of-thousands of enrollees in the failing co-ops will have to find health insurance elsewhere, . . . probably at a higher cost sufficient to support continuation of the insurer, . . . 'cause it must meet Obamacare standards whether they want the mandated coverage or not.

DonDiego has been repeatedly assured, however, that everyone will be able to keep their doctor if they want to. He doubts it. They sure weren't able to keep their insurance plan.

Like it's namesake, Obama-care is nothing more than a lie.

Obamacare is the worst possible solution to a horrible problem. We are facing or will be facing in a aging population. It will cost the people who are now paying for healthcare now even more and the one getting the free rides already will continue getting the free rides. January 1 will be the shock on raising costs for healthcare. I always heard the term "insurance poor" well we will all be exposed to it this coming year. I really do not care what party you represent you may go in with good intention but within a short period of time you become a different person many types include liars--cheats---and live on broken promises they made. Don't count Obama out just yet. He just may be Biden running mate in the next election. Biden gets elected and 6 m onths down the road he steps aside for either personal and family reasons and guess what????????? HE'S BACK!!!!!!!!

The govt is now saying that they will miss 2016 enrollment numbers by 50%

As of March 2015 : 16.4 million more people have health insurance under Obamacare compared to the train wreck that preceded it. That number will grow next year....and grow even further if red state governors expand Medicaid. And none of these people are subjected to rescission of their policy due to a costly medical condition. Makes you long for the good ole days, doesn't it?

And just as an added bonus: Seniors now pay half for their prescriptions compared to the previous system...and that amount gets smaller each year before disappearing altogether for Hillary's second term in 2020.

Free scrips? That's the first I've evr heard of that. Is that Govt. picking up the tab or Ins. co.s
's? If it's the latter, rest assured, they won't be free, it'll be reflected in any rate increases. Free scrips would be nice, but as the old adage goes, no such thing as a free lunch.

The prior system was a train wreck only in the eyes of the liberals as over 60% of the country approved the prior system. Several years later obamacare is still opposed by almost 60% of the population.

Does pj realize that when states expand medicaid it costs tax dollars?

Medicare rates are set to increase next year.

Only the liberals see failed co-ops, higher premiums, less availability as a success.

Hoops missed the memo about Obamacare's effect on the deficit. But thats what happens when listen to too much AM radio.

But,hey, its a free country, Hoops! If you prefer a system that allows insurance companies to discriminate against their sick customers...and where premiums pick up the slack for uninsured people....and you pay twice as much for Medicare drugs....and have 16 million fewer people insured....then you have a political party that can represent you. They're the same party that made it illegal for Medicare to negotiate drug prices.

Once folks can vote for other so pay for their bills, medical or otherwise, the democracy is destined to collapse.

The deficit went down because the govt was collecting obamacare taxes before the obamacare expenses started to kick in. The deficit is projected to exceed $1t again within a few years.

This has been mentioned before.