Thread: 12 Obamacare Insurance CO-OPs Fold After Getting $1.2 Bil from Govt.

12 Obamacare Insurance CO-OPs
Fold After Getting $1.2 Bil from Govt.

MARCH 14, 2016

More than half of the government-funded nonprofit health insurers created by Obamacare have failed,
sticking taxpayers with a $1.2 billion tab and leaving hundreds of thousands of people in more than a
dozen states scrambling for medical coverage, a new federal audit reveals. The nonprofit insurers are
known as Consumer Operated and Oriented Plan Program (CO-OP) and the Department of Health and
Human Services (HHS) has pumped $2.4 billion into them under the president’s hostile takeover of the
nation’s healthcare system.

Congress initially allocated $6 billion for the Obamacare CO-OP program, with the goal of establishing
CO-OPs in all 50 states as well as the District of Columbia. Thankfully, subsequent legislation slashed
funding for the ill-fated experiment. In all, HHS has funded 23 of these dubious enterprises and 12
have already gone under after losing an astounding $1.2 billion that’s unlikely to ever be recovered.
As a result 740,000 people in 14 states must search for new medical coverage they thought they
had under the disastrous Obamacare plan. Every resident of the United States who pays taxes should
be outraged by this monstrous failure, exposed in great detail in a scathing report published by the
Senate Homeland Security and Governmental Affairs Committee. The committee’s probe reveals that,
even when the CO-OPs showed clear signs of financial failure, HHS kept giving them huge amounts of
money in the form of “loans” the agency knew would never be repaid. In fact, HHS officials knew of
serious problems with enrollment strategies, financial forecasts, management and pricing before
approving the first loan, according to the panel’s findings. “HHS approved the failed CO-OPs despite
receiving specific warnings from a third-party analyst about weaknesses in their business plans,” the
report states.

The CO-OPs ultimately racked up a breath-taking $376 million in losses in 2014 and more than $1 billion
in losses in 2015 yet the cash kept flowing. HHS knew how serious the problem was, according to the
report, yet kept filling the CO-OP’s coffers. By the end of 2014, the 12 collapsed insurance nonprofits
had already exceeded their projected worst-case-scenarios by more than $263 million, four times more
than what they initially projected. Incredibly, that didn’t stop Obama’s minions at HHS from doling out
another $848 million even as the CO-OPS were on a downhill spiral. “Even though HHS was aware of
serious financial distress suffered by the CO-OPs in 2014, it failed to take any corrective action or
enhance oversight for more than a year,” the senate investigation found, confirming that the health
agency “regularly received key financial information from the CO-OPs” that clearly showed the failed
insurers “experienced severe financial losses that quickly exceeded even the worst-case loss projections.”

For example the Kentucky CO-OP lost $50.4 million in 2014 yet went on to get enough taxpayer money to
lose another $114 million the following year before ultimately collapsing, according to the report. When the
Kentucky CO-OP went under its operating losses exceeded $163 million. Another example listed by the panel
is the New York CO-OP, which lost an egregious $634 million in two years. The Illinois CO-OP lost $90 million.
Even Maine’s CO-OP, which made $7.3 million in 2014, went on to lose $74 million the following year.
Maryland’sCO-OP was the most successful of the remaining government-funded insurers and it lost a
startling $10.8 million.

A number of other examples of this massive boondoggle are listed throughout the report, which cites previous
audits by different government entities documenting the many failures the Obamacare CO-OP program.

“The financial toll of this failed experiment is much steeper than has been previously reported,” according to
this latest audit, which took nearly a year to be completed. “The twelve closed CO-OPs ran up more than
$1.4 billion in losses over just the two years they sold plans. Based on the latest balance sheets obtained
by the Subcommittee, the failed CO-OPs currently estimated non-loan liabilities (including unpaid medical bills)
exceed $1.13 billion—which is 93% greater than their $585 million in reported assets. In addition, the CO-OP’s
debt to the U.S. government stands at over $1.2 billion. Prospects for repayment are dim.” Indeed,
American taxpayers have once again been cheated.

https://www.judicialwatch.org/blog/2...bil-from-govt/

BOOM: Biggest Insurer In America Delivers BRUTAL News To Obama… He’s Humiliated

Just about everyone knew Present Barack Obama’s Affordable Care Act was doomed to fail from the beginning because health insurers would not be able to cover the ballooning costs.

To prove just how mush of a failure Obama’s signature health reform measure is, the nation’s largest insurer, UnitedHealth Group, announced that it would be pulling out of the states of Arkansas and Georgia due to huge financial losses.

The decision comes as the company detailed more than $400 million in losses in Obamacare exchanges, according to the Washington Examiner. The company also threatened to leave the exchanges altogether because of losses that climbed near $1 billion.

The company expressed regret about entering the exchanges and has been warning for months that it would have to do something to stay afloat.

Other insurers such as Cigna have reported similar losses but haven’t left the exchanges in hope that the market will stabilize and present an opportunity for profitability. But there’s no guarantee that will happen and forecasters aren’t banking on it.

This is bad news for everyone, but it isn’t like we didn’t expect it. Healthcare premiums rose at an alarming rate — a rate many individuals simply couldn’t afford. While marketplaces were designed to allow for competition in order to keep prices competitive, it didn’t work out that way.

Officials have been predicting the collapse of co-ops by the end of the year, citing poor federal oversight. The government has promised to step in and provide corrective active plans in an attempt to help struggling co-ops, but it may prove to be too little too late.

UnitedHealth’s decision is a dire warning of things to come. No business is going to participate in a program that results in huge losses. It simply doesn’t make financial sense.

The failure of Obama’s health care reform goes to show just how little financial sense liberals have.

http://conservativetribune.com/insur...rs-news-obama/

Yeah, the liberals screwed it up, but what did the conservatives do? They did nothing. It's time for Real Republicans to step up and take control of our country. Real Republicans like Donald Trump and all his Trump Supporters know how to do things and get things done, because we've been doing it our entire lives and our families have been doing it for generations.

It's time to Rise, Real Republicans. Lets do this and get Donald Trump to the White House so we can start fixing our country.