Obamacare success

[Chris0nllyn]

Govt. dolled out $2.4 billion in loans to non-profit health plans (called CO-OPS, Consumer Operated and Oriented Plans). Like most things govt. does, they had a cute idea that didn't work in the real world.

That idea was to increase competition in the insurance market in order to keep checks on for-profit insurers.
https://www.cms.gov/CCIIO/Programs-...sumer-Operated-and-Oriented-Plan-Program.html

13 of the 23 plans show "considerably lower" enrollment.
http://oig.hhs.gov/oas/reports/region5/51400055.pdf

Those $2.4 billion in loans were meant to be paid back to the taxpayers (with interest) within 5 years (solvency loans in 15 years).

The low enrollments and net losses might limit the ability of some CO-OPs to repay startup and solvency loans and to remain viable and sustainable. Although CMS recently placed four CO-OPs on enhanced oversight or corrective action plans and two CO-OPs on low-enrollment- warning notifications, CMS had not established guidance or criteria to assess whether a CO-OP was viable or sustainable.

So, not only are they mostly operating as a loss, have low enrollment, and probably won't be able to pay back those loans, the govt. hasn't even given clear rules on what constitutes viability or sustainability.

Here's an option, shut it down. Like what the Louisiana Health Cooperative will do by the end of the year.
http://www.insurancejournal.com/news/southcentral/2015/07/27/376390.htm

They reported a $5.7 million loss last year. Essentially, for every $1 in premiums it collected, they paid out $1.13.
http://www.modernhealthcare.com/article/20150727/NEWS/150729875

The CMS (Centers for Medicare and Medicaid Services, who oversaw the program) picked these organizations based on their idea that they:

“demonstrated a high probability of becoming financially viable.”

Give yourselves a pat on the back.

 

[stgislander]

The MD Co-op lost 14.5M in 2014. It will be interesting to see how 2015 pans out.