Tag: bankruptcy

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.

Finding out what’s in it (for Democrats): Billions of dollars of Obamacare funds have vanished, having been given to sixteen states — mostly Democratically-run — to build Obamacare marketplaces but never used as intended.

The controls on federal spending right now are nil. The money almost goes out randomly, without any scrutiny, funding the friends of the Washington politicians both in Washington and throughout the country. The Democrats might have benefited royally from Obamacare, but the Republican leadership gets its own payoffs with these funds, which is why they haven’t done much to cut spending, even though that was the promise they ran under.

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.