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Finding out what’s in it: Utah’s only Obamacare co-op has announced it is shutting down at the end of the year due to lack of funding/income.
Arches, the only co-op health plan in Utah, began offering insurance through the Affordable Care Act in fall 2013, beginning coverage in January 2014. The nonprofit group says it’s ceasing operations because of a lack of funding from the federal “risk corridor” program, which was built into the Affordable Care Act and intended to protect insurance companies from their losses. “As one of the carriers on the (health care) exchange, we stood to benefit by our calculations in excess of $30 million for those ‘risk corridor’ payments,” Tricia Schumann, chief marketing and communications officer for Arches, told KSL. “We did anticipate those cash payments coming in … this quarter.”
The point of the fund was to mitigate losses among insurance companies and co-ops that suffered large financial risk associated with the Affordable Care Act because of unprecedented enrollment for coverage.
However, federal officials announced Oct. 1 that only 12.6 percent of the expected windfall from that risk management fund would be awarded to insurance companies.
In other words, they — and Obamacare — never had a viable profit model (as predicted by conservatives even before the law was passed). Instead, they were depending on large federal government handouts, as mandated by Obamacare itself. The federal government however simply can’t afford to give out that much money, and thus, bankruptcy.
All the more reason to continue to vote Democrat! They cared, even though they hadn’t the slightest idea of what they were doing and thus pushed through a law that was incredibly stupid and damaging. That they cared however is all that matters.