Two more Obamacare state co-ops fail
Finding out what’s in it: Obamacare co-ops in Tennessee and Kentucky have announced that they are going out of business and their customers need to find new health insurance plans.
The following two paragraphs about the failure of the Kentucky co-op illustrate succinctly what conservatives were saying about Obamacare before it was launched about why it was never going to work:
The co-op lost $50 million last year, partly because over 20,000 more people had purchased the insurance than originally estimated. Glenn Jennings, Kentucky Health Cooperative’s interim CEO, told the Herald-Leader that further financial woes came because many of their new members had not previously had health insurance, leading to “a lot of people with pent up medical needs.” Then, said Jennings, “when they suddenly had health insurance…they began using their benefits.”
Jennings said that they had slowed their losses to $4 million in the first half of 2015, but were counting on substantial federal loans to continue operations. Instead, the feds announced they would only provide 12.6 percent of the funds requested by insurers through the assistance program. Kentucky’s insurers were hoping to get a total of $77 million in loans, but only received $9.7 million.
If insurance companies are forced to take anyone, as Obamacare does, then no one is going to buy insurance until they need it, defeating the entire premise of insurance. Thus, the Kentucky co-op was quickly saddled with too many sick customers and not enough healthy ones to pay the costs. To solve this they were then depending on the government to make up the difference. This however is simply impossible. There just isn’t enough of other people’s tax dollars to fund such inefficiencies.
The unsurprising result: Bankruptcy. As the article notes, of the 23 state co-ops still in operation, 21 are losing money. Expect more bankruptcies to come.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Finding out what’s in it: Obamacare co-ops in Tennessee and Kentucky have announced that they are going out of business and their customers need to find new health insurance plans.
The following two paragraphs about the failure of the Kentucky co-op illustrate succinctly what conservatives were saying about Obamacare before it was launched about why it was never going to work:
The co-op lost $50 million last year, partly because over 20,000 more people had purchased the insurance than originally estimated. Glenn Jennings, Kentucky Health Cooperative’s interim CEO, told the Herald-Leader that further financial woes came because many of their new members had not previously had health insurance, leading to “a lot of people with pent up medical needs.” Then, said Jennings, “when they suddenly had health insurance…they began using their benefits.”
Jennings said that they had slowed their losses to $4 million in the first half of 2015, but were counting on substantial federal loans to continue operations. Instead, the feds announced they would only provide 12.6 percent of the funds requested by insurers through the assistance program. Kentucky’s insurers were hoping to get a total of $77 million in loans, but only received $9.7 million.
If insurance companies are forced to take anyone, as Obamacare does, then no one is going to buy insurance until they need it, defeating the entire premise of insurance. Thus, the Kentucky co-op was quickly saddled with too many sick customers and not enough healthy ones to pay the costs. To solve this they were then depending on the government to make up the difference. This however is simply impossible. There just isn’t enough of other people’s tax dollars to fund such inefficiencies.
The unsurprising result: Bankruptcy. As the article notes, of the 23 state co-ops still in operation, 21 are losing money. Expect more bankruptcies to come.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
And that is the plan, its working perfectly. Set this “Obamacare” system up and as the states fall under the financial weight the federal government takes over, in other words Single Payer Healthcare. They do it England you know.
Why can’t America be like everyone else?
(That is a self answering question for anyone who is not a leftist, Socialist or a Democrat.)
What really bugs me is the fact that the GOP keeps claiming that Obamacare needs to be repealed, but “they” do NOTHING! Both parties only want power to control you and me. The only difference is the Dems want Obamacare overtly and the GOP wants Obamacare covertly. They both want Obamacare for more control of the people.
Rocco you are correct.
It sure does seem that way doesn’t it? :-(