ANOTHER ONE BITES THE DUST: NATION’S 10TH OBAMACARE CO-OP COLLAPSES

To a Progressive Liberal this is all good?

 Today, the Utah Insurance Department announced that Arches Healthcare, Utah’s first Obamacare co-op health plan provider, will cease operations thanks to financial insolvency, despite receiving $90 million in taxpayer-funded loans. It’s the 10th such program to close nationwide.

Utah State Director Evelyn Everton issued the following statement:

“This is exactly why Utah was right to reject Obamacare’s Medicaid Expansion. Everyday we hear more bad news about the President’s failing health plan. From dozens of states who are over-budget because of Medicaid expansion, to failing Obamacare exchanges and insolvent co-ops, it’s clear that no part of Obamacare is working as it should.”

“Over $90 million taxpayer dollars have been wasted on Utah’s failed Obamacare co-op and all we have to show for it are more Utahns scrambling for health coverage. At what point will we finally realize Obamacare is a disaster and the legislature should move away from expansion for good?”

In total, over $876 million has been spent on failed CO-OPs, and hundreds of thousands of people will lose their coverage at the end of the year as a result of the closures.

“One Third Of Obamacare Co-Ops Are Now Officially Dead.” “One-third of the Obamacare health insurance co-ops have now failed, causing about 400,000 policyholders in 10 states to scramble for new coverage for 2016. Seven of the 23 co-ops created by the Affordable Care Act in 2011 at a cost of $2.4 billion — including many launched by passionate but inexperienced health reform activists —  have since closed their doors. An eighth, the Colorado Health Insurance Cooperative, appears on the brink of default as well.” (Richard Pollock, “One-Third Of Obamacare Co-Ops Are Now Officially Dead,” The Daily Caller, 10/15/15)

Including Colorado, Taxpayers Have Lost $876 Million in Loan Money “Including Colorado, taxpayers have lost $876 million in loan money that was supposed to last for 15 years. The failed co-op’s existed for only two years before suddenly closing their doors.” (Richard Pollock, “One-Third Of Obamacare Co-Ops Are Now Officially Dead,” The Daily Caller, 10/15/15)

The Consumer Operated and Oriented Plan (CO-OP) Programs Are One Of The Affordable Care Act’s “Key Mechanisms.” “…the health care law also established a Consumer Operated and Oriented Plan (CO-OP) program to increase competition among plans and improve consumer choice. The federal government awarded nearly $2 billion in loans to help create 24 new CO-OPs in 24 states.” (Julia James, “The CO-OP Health Insurance Program.” Health Affairs, 1/23/14)

Arches Healthcare is the 10th Obamacare Co-Op to Close: “A lack of federal funding from the Obama administration has caused the 10th taxpayer-funded Obamacare insurance startup to close.” (Utah 10th Obamacare startup to close, Washington Examiner, 10/27/15)

And more failures are expected

HHS Official: “Cannot Rule Out” That More CO-OPs Will Have Solvency Issues.“‘If a co-op has solvency issues, and we cannot rule out that others may this year, we will work with the states so that consumers have affordable options on the marketplace,’ said Department of Health and Hhuman Services spokesman Aaron Albright. ‘As a startup business, we recognize not all will succeed.’” (Richard Pollock, “Feds Admit More Obamacare Co-Op Flops Ahead,” The Daily Caller, 9/28/15)

http://americansforprosperity.org/utah/article/another-one-bites-the-dust-nations-10th-obamacare-co-op-collapses/