ACA Government Co-Ops: Is This Experiment Working In Your State?

[AllenChicago]

Somarco, Iowa and Nebraska kicked in when their Coop went belly-up.

"Iowa and Nebraska's Guarantee Associations — and state and federal taxpayers — are liable for millions in claims from health care providers the COOP could not pay. State guarantee associations are designed to protect state policyholders in the event their insurer becomes insolvent. Guarantee associations are usually funded by taxes or assessments on all insurers within a state. This is the first failure, but will undoubtedly not be the last."

Source: Obamacare Health Insurance COOPs Are Unraveling | NCPA

 

[somarco]

Some, but not all, co-ops were covered by the guaranty funds. Only the ones filed as insurance carriers.

Some were set up as co-ops, similar to fraternal or farmers co-op or associations, and not covered by guaranty funds.

 

[Yagents]

Ruh Roh. CO Co-Op admits they're at risk with low reimbursement in risk corridor failure:

Colorado health cooperative says feds reneged on promised payment - The Denver Post

 

[RayNY]

"But Crowe said she believes the government "is committed to fully funding the risk-corridor program over its life" and to helping stabilize the cooperatives."

I wonder if Crowe knows that the risk-corridor program isn't funded by the government? (Funded by excess profit on insurers, which there isn't much of, especially in states with rate approval.)

Almost a fifth of the CO-OPS have already folded, all but one are in financial trouble, with about a half billion lost in the process. Doesn't seem like much of a commitment to me.

 

[AllenChicago]

Ruh Roh. CO Co-Op admits they're at risk with low reimbursement in risk corridor failure:

Colorado health cooperative says feds reneged on promised payment - The Denver Post

Obviously the Colorado Cooperative was in financial trouble to begin with, or it wouldn't need a paltry $10 million so badly. If they received $10 million tomorrow, claims, admin, and salaries would use it up before Thanksgiving.

 

[Yagents]

Should the taxpayer bail out the Co-Ops ?

The Durango Herald 10/05/2015 | Funding shortfall could sink health insurance co-op

CQ.com - Login

Congressional Quarterly Share to FacebookShare to Twitter (10/6, Subscription Publication) reports the Centers for Medicare and Medicaid Services announced last week that the ACA's risk-corridor program is running a $2.5 billion shortfall, meaning insurers will be paid just 13 percent of what they claimed for this year. CMS "is expected to ask lawmakers to close the gap," but Sen. Marco Rubio (R-FL) and "GOP colleagues, who last December narrowed the administration's room to maneuver to close the gap in the insurer-funded program, are now seeking to build on that by forcing insurers to adjust prices to reflect costs." Rubio introduced a measure to repeal the provision creating the risk-corridor program, and he is also the chief co-sponsor of a bill from Sen. Bill Cassidy (R-LA) that "would leave the program in place, but would amend the 2010 law to say funding can only come from payments by insurers."

 

[somarco]

IMO the taxpayer never should have funded these things from the start, but no one asked me.

 

[GreenSky]

IMO the taxpayer never should have funded these things from the start, but no one asked me.

That's not true. I asked you 3 years ago.

Rick

 

[AllenChicago]

October 7, 2015

Uh Oh... Looks like significant, imminent trouble brewing in Co-op land. Here is an updated chart that shows the Income Loss/Gain in the first six months of 2015, and the amount of capital each Co-op had on hand, as of June 30th.

Article: https://www.washingtonpost.com/nati...bc98-6d36-11e5-9bfe-e59f5e244f92_graphic.html

On a personal-local note, our Land of Lincoln seems to be in dire straits, with a 6 month loss of $25 million and only $24 million in capital (cash?) on hand. Is the overweight lady about to sing?

 

[taterpeeler]

someone get in trouble... get scolded by the godfather? The link don't work, I got this


This file was inadvertently published.

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