A project of the Galen Institute
The Des Moines Register
The federal government could be out more than $140 million by the time a defunct Iowa health-insurance cooperative's finances are settled, a new court filing suggests.
CoOportunity Health, which was created under the Affordable Care Act, went belly up last December after losing millions of dollars. Its financing included $147 million in loans from the federal government. That money was used to launch the company in 2012 and then to keep it afloat as it sold health-insurance policies to about 110,000 people in Iowa and Nebraska.
The Daily Caller
Federal officials refuse to identify the troubled Obamacare health co-ops that the Centers for Medicare and Medicaid Services has placed in a special risk category requiring “enhanced oversight” due to low profitability or low enrollment.
Read more: http://dailycaller.com/2015/08/03/obama-administration-refuses-to-identify-troubled-healthcare-co-ops/#ixzz3hsEAlG77
Employee Benefit Adviser
As pressure mounts on state-run public health insurance exchanges to be financially self-sufficient in time for 2016, consumer operated and oriented plans created under the Affordable Care Act face the same challenge. And with two recent troubling developments in the CO-OP space, there are renewed questions about the long-term viability of these nonprofit entities that seek to compete with commercial carriers that offer plans on the public exchanges.
The Daily Caller
Andy Slavitt — President Obama’s choice to manage Obamacare, Medicare and Medicaid — was linked seven years ago to a massive medical data fraud scheme that resulted in what was then the largest settlement ever by an insurance company.
If he is confirmed by the Senate, Slavitt will head the Centers for Medicare and Medicaid, which manages the federal government’s three biggest health care programs. He will manage an estimated $1 trillion in benefits that are paid to millions of doctors, patients and hospitals.
The federal government shelled out $2.4 billion in loans to a series of non-profit health plans under Obamacare, but now they’re struggling to stay alive.
The plans, dubbed CO-OPs (Consumer Operated and Oriented Plans) were intended to increase competition in the insurance market and serve as a check on private insurers by providing an alternative that wasn’t focused on profit. They were a compromise measure intended to satisfy liberals who wanted the law to set up a fully government-run health insurance option.
The Wall Street Journal
The people running ObamaCare set low expectations and then consistently fail to meet them, but could the expectations at least stop plunging? Witness the recent “secret shopper” audit that unmasked the entitlement’s wide-open exposure to fraud and the lack of any plan to prevent it.
Across the country, governors and state lawmakers have circled “2017” on their calendars. This is the first year that the enhanced federal funding for Obamacare’s Medicaid expansion starts to fade away and states will have to scramble to find new funds to pick up their share of the expense. As it turns out, “free money” comes at a cost.
But a new report from the Foundation for Government Accountability (FGA) reveals that the fiscal pain soon coming to states may be even worse than anticipated.
The Centers for Medicare & Medicaid Services (CMS) has taken formal action in response to concerns about the finances of four of the new nonprofit, member-owned CO-OP health plans, according to the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG).
The Daily Caller
Almost all of Obamacare’s landmark health insurance co-ops are in financial trouble.
The co-ops were invented by the health-care law — they’re private nonprofits that were awarded a total of $2.4 billion in loans from the federal government, in order to establish nonprofit competition to private health insurance companies.
The Daily Signal
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.