Obamacare: ‘The Grim Announcements Keep Coming’

Nearly Half Of The 23 [Co-Op] Programs Set Up Under The Affordable Care Act Have Failed’

SEN. JOHN BARRASSO (R-WY): “Remember when President Obama’s mantra was ‘If you like your health care plan, you can keep it?’ Now the administration is singing a different tune… For some people, their old plan won’t be available at any price. This includes more than a half-million people insured by one of the health co-ops that have shut down in 11 states over the past few months.” (Sen. Barrasso, Op-Ed, “Beginning Of The End Of Obamacare,” Washington Time, 11/1/15)

SENS. ORRIN HATCH (R-UT) & LAMAR ALEXANDER (R-TN): “We are concerned that the remaining CO-OPs continue to struggle with viability issues.  According to the OIG report, most of the 23 CO-Ops reviewed had not met their initial enrollment and profitability projections.  Additionally, most of the CO-OPs had net losses higher than their initial projections.  Over $2.4 billion in federal startup and solvency loans has been paid to CO-OPs. The massive failures of so many CO-OPs raise concerns about an ACA program that was designed to increase competition.” (Sens. Hatch & Alexander, Letter To Andrew Slavitt, 11/2/15)

‘The Future Of An Obamacare Program … Increasingly In Doubt’
“Officials in Arizona announced Friday that its co-op will close in 2016, meaning nearly half of the 23 programs set up under the Affordable Care Act have failed.” (“GOP Piles On After Nearly Half Of Obamacare’s Co-Ops Fail,” The Washington Times, 11/2/15)

• “The grim announcements keep coming, picking up pace in recent weeks.” (“Health Care Co-Op Closings Narrow Consumers’ Choices,” The New York Times, 10/25/15)
• “The future of an ObamaCare program that was intended to create non-profit insurers is increasingly in doubt, with several of the ventures forced to close down around the country.” (“Obamacare Co-Ops At Risk Of Failing After Billions In Loans,” The Hill, 10/17/15)

ARIZONA: “A low-cost health insurance co-op that covers about one in three Arizonans that have an Affordable Care Act marketplace plan won't be allowed to sell health plans Sunday — the opening day consumers can purchase insurance — after the state of Arizona and the federal government took action against the entity. … The government decisions will require about 59,000 Arizona residents who are covered by Meritus to switch health-insurance providers to maintain coverage in 2016, state officials said.” (“Arizona Health Insurance Co-Op Off The Marketplace,” Arizona Republic, 10/31/15)

SOUTH CAROLINA: “A South Carolina health insurer has become the ninth insurance cooperative formed nationwide under the Affordable Care Act to fold. Consumers' Choice Health Insurance Co. said Thursday that it will not sell policies in 2016, a decision that will leave 67,000 individuals and business customers looking for new coverage.” (“Ninth Cooperative Formed Under Affordable Care Act Closing,” ABC News, 10/22/15)

KENTUCKY: “Kentucky’s nonprofit health insurer set up under ObamaCare is shutting down because of financial problems, the latest in a string of closures for the nonprofit plans around the country. Kentucky Health Cooperative, a nonprofit insurer known as a co-op, explained that it could not stay financially afloat… The Kentucky co-op provides insurance for 51,000 people, who will lose their plans at the end of the year.” (“Kentucky Nonprofit Health Insurer To Shut Down,” The Hill, 10/9/15)

TENNESSEE: “Community Health Alliance (CHA) has voluntarily entered state-approved runoff and will not offer insurance coverage in 2016. The runoff decision came after careful analysis of the company’s current and future financial condition and lengthy discussions involving the Centers for Medicare & Medicaid Services, the Tennessee Department of Commerce & Insurance (TDCI) and CHA. Created as a Consumer Operated and Oriented Plan (CO-OP) under the Affordable Care Act, CHA has approximately 27,000 enrollees.” (Tennessee Dept. Of Commerce & Insurance, Press Release, 10/14/15)

NEW YORK: “Government officials are shutting down a nonprofit health insurer in New York set up under ObamaCare because of its financial struggles, the latest blow to the healthcare law’s nonprofit plans.” (“Another Obamacare Nonprofit Bites The Dust,” The Hill, 9/25/15)

• “Health Republic has about 215,000 members, with about half holding individual plans and half under small-business coverage…” (“Regulators To Shut Down Health Republic Insurance Of New York,” The Wall Street Journal, 9/25/15)

COLORADO: “Colorado's biggest nonprofit health insurer announced its closure Friday, forcing nearly 83,000 Coloradans to find a new insurer for 2016. Colorado HealthOP announced Friday that the state Division of Insurance has said it can't keep selling health insurance.” (“Largest Health Insurer On Colorado Exchange Collapses,” AP, 10/16/15)

OREGON: “Health Republic Insurance, one of the state's two co-ops, said Friday it will not offer plans in 2016. … Oregon's co-op served nearly 15,000 members, and will still give coverage through the end of the year.” (“Oregon Latest State To Ditch Obamacare Co-Op,” The Examiner, 10/16/15)

NEVADA: “Nevada Health CO-OP, a nonprofit insurer created by the Affordable Care Act and federally funded to offer health coverage through the Nevada Health Link marketplace, said Wednesday that it cannot make enough money to stay in business after Jan. 1.” (“Millions In The Red, A Nevada Obamacare Insurer Has Failed,” Las Vegas Review-Journal, 8/26/15)

NEBRASKA & IOWA: “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. … CoOportunity was one of 23 health insurance co-ops set up under the Affordable Care Act, also known as Obamacare. It was the first to fail.” (“CoOportunity Failure Could Cost Feds $140 Million,” The Des Moines Register, 8/3/15)

LOUISIANA: “…Louisiana Health -- taken over by state regulators on Sept. 1 -- was one of 23 plans created nationally under the Affordable Care Act to ensure there would be competition among health insurers.” (“Program Designed To Help Louisiana With New Health Cooperatives Fails,” The Advocate, 9/26/15)

• “The co-op’s roughly 17,000 policyholders…” (“State Takes Over Nonprofit Health Insurer,” The Advocate, 9/1/15)

VERMONT: “A co-op in Vermont was shuttered in 2013, before it even began selling plans.” (“Millions In The Red, A Nevada Obamacare Insurer Has Failed,” Las Vegas Review-Journal, 8/26/15)

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