Obamacare Insurer Almost Broke

[HI54UNI]

Obamacare-Aided Insurer Almost Broke After Getting $145 Million in Loans

(Bloomberg) -- A startup insurance company loaned $145 million by the U.S. government under Obamacare is running out of money and being taken over by state officials in Iowa.

The company, CoOportunity Health, which also serves Nebraska, was placed under Iowa Insurance Commissioner Nick Gerhart’s supervision this week and is no longer accepting new enrollees, according to a statement from his office. While Gerhart’s agency will operate the company for the time being, it’s urging policyholders to seek a new insurer.

CoOportunity Health is a co-op, or Consumer Operated and Oriented Plan, one of 23 nonprofit health insurers providing coverage in 26 states. They were created under the Patient Protection and Affordable Care Act to increase competition. The fate of CoOportunity provides new fodder for Obamacare opponents who argue that the law wastes government money.

The co-op’s troubles are a blow to an Obamacare program that had outperformed the direst predictions of Republicans. While Obamacare opponents had argued the companies would fail and squander government loans, some co-ops including CoOpportunity had outpaced forecasts for enrollment, growing five times faster than expected through March.

CoOportunity now has 96,350 enrollees, up from 63,000 at the end of March, according to its website. The Centers for Medicare and Medicaid Services provided the insurer $130.6 million in funding for solvency and $15.4 million for operations, according to a legal filing by Gerhart. CMS told CoOportunity Dec. 16 it couldn’t provide more funds. The insurer lost $45.7 million from January to October, according to the petition.

http://www.bloomberg.com/politics/artic ... n-in-loans

[Chizzang]

Ya... big surprise
The affordable Care act is NOT about competition
It's about Insurance Monopoly and Profit

a co-op dropped into place as some kind of competitive deterrent is a pipe dream from the get-go

[andy7171]

HHmmmm. Who would have thought people with pre-existing conditions take out more than they put in? Gotta wait for all the healthy people to kick in their penalty fees for not buying in.

[SeattleGriz]

I know a couple that complains they can't afford insurance for their family, but didn't have any problem buying 20 K in snowmobiles.

[Grizalltheway]

I know a couple that complains they can't afford insurance for their family, but didn't have any problem buying 20 K in snowmobiles.

To be fair, snowmobiles are a hell of a lot more fun that visiting the doctor.

[kalm]

I know a couple that complains they can't afford insurance for their family, but didn't have any problem buying 20 K in snowmobiles.

To be fair, snowmobiles are a hell of a lot more fun that visiting the doctor.

I think Obama should pay for our snowmobiles.

[GrizFanStuckInUtah]

To be fair, snowmobiles are a hell of a lot more fun that visiting the doctor.

I think Obama should pay for our snowmobiles.

I thought it was cell phones and house payments?

[AZGrizFan]

I think Obama should pay for our snowmobiles.

I thought it was cell phones and house payments?

That too.