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Finding out what’s in it: 22 of the 23 nonprofit co-ops created under Obamacare to replace for-profit insurance companies lost money, with the majority failing badly to sign up customers.
Under President Barack Obama’s overhaul, taxpayers provided $2.4 billion in loans to get the co-ops going, but only one out of 23 — the one in Maine — made money last year, said the report out Thursday. Another one, the Iowa/Nebraska co-op, was shut down by regulators over financial concerns. The audit by the Health and Human Services inspector general’s office also found that 13 of the 23 lagged far behind their 2014 enrollment projections.
The probe raised concerns about whether federal loans will be repaid, and recommended closer supervision by the administration as well as clear standards for recalling loans if a co-op is no longer viable. Just last week, the Louisiana Health Cooperative announced it would cease offering coverage next year, saying it’s “not growing enough to maintain a healthy future.” About 16,000 people are covered by that co-op.
In other words, the $2.4 billion was really a pay-off to friends of the Democratic Party, taken from the taxpayers and handed over to that party’s supporters. The Obama administration will never demand that money back, nor do I expect it to increase its oversight of these co-ops.
Read the whole article. It illustrates once again how terrible a law Obamacare is, and how it must be repealed — in full — if the American economy is ever going to have a hope of recovering from the slump it has been in since 2007.