ACA Government Co-Ops: Is This Experiment Working In Your State?
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Apparently. But they reworked the story and put it back up today at this URL:
https://www.washingtonpost.com/nati...b8f3ec-6c66-11e5-9bfe-e59f5e244f92_story.html
It might be removed again when the Godfather in D.C. sees it.
Here is the first story back online again. No idea what, if anything, is different
https://www.washingtonpost.com/nati...bc98-6d36-11e5-9bfe-e59f5e244f92_graphic.html
https://www.washingtonpost.com/nati...bc98-6d36-11e5-9bfe-e59f5e244f92_graphic.html
And based on the graphic below from Bob, it looked like Kentucky Co-Op was in good shape (negative 3 million / + 67 million in capital). Ooops, that's until the failed risk corridor experiment caused it's first Co-Op casualty today.......Kentucky
Kentucky PPACA CO-OP to shut down | LifeHealthPro
Managers of Kentucky Health Cooperative Inc., a nonprofit, member-owned health insurer based in Louisville, say the company will shut down at the end of the year.
Organizers used $146 million in loans from the Consumer Operated and Oriented Plan (CO-OP) program, a Patient Protection and Affordable Care Act (PPACA) program, to start the insurer.
The U.S. Department of Health and Human Services (HHS) announced last week that another new PPACA program, the risk corridors program, may be able to provide less than 13 percent of the payments the program was supposed to send health insurers for 2014.
See also: Feds: PPACA risk program may pay just 13% of 2014 claims
PPACA calls for the risk corridors program to use cash from PPACA exchange plan issuers that do well in 2014, 2015 and 2016 to help exchange plan issuers that do poorly during those years.
The risk corridors program shortfall means the Kentucky CO-OP may get just $9.7 million of the $77 million in risk corridors payments it was hoping to collect, according to Glenn Jennings, the company's chief executive officer.
Kentucky PPACA CO-OP to shut down | LifeHealthPro
Managers of Kentucky Health Cooperative Inc., a nonprofit, member-owned health insurer based in Louisville, say the company will shut down at the end of the year.
Organizers used $146 million in loans from the Consumer Operated and Oriented Plan (CO-OP) program, a Patient Protection and Affordable Care Act (PPACA) program, to start the insurer.
The U.S. Department of Health and Human Services (HHS) announced last week that another new PPACA program, the risk corridors program, may be able to provide less than 13 percent of the payments the program was supposed to send health insurers for 2014.
See also: Feds: PPACA risk program may pay just 13% of 2014 claims
PPACA calls for the risk corridors program to use cash from PPACA exchange plan issuers that do well in 2014, 2015 and 2016 to help exchange plan issuers that do poorly during those years.
The risk corridors program shortfall means the Kentucky CO-OP may get just $9.7 million of the $77 million in risk corridors payments it was hoping to collect, according to Glenn Jennings, the company's chief executive officer.
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Seeing Kentucky close down, with $61 million in capital and "only" a $4 million negative 6 month cash flow is surprising. As the chart indicates, there are several who are in far worse shape. Maybe they're living in denial until the state steps in to take action, like with the prior failures. Kentucky is being shut down by forward-thinking internal managers who know how to use financial projections properly, and care about their Members.. which is supposed to be the battle cry of these Co-ops.. "We are Member Owned and Will Take Care of You!"
Time to update the chart...
We started with 23 state Co-ops... These have gone belly-up during just two open enrollments:
1. Vermont - Was squashed based on poor projections.
2. Co-Opportunity Health - Iowa/Nebraska
3. Louisiana Health Cooperative - Louisiana
4. Nevada Health Co-op - Nevada
5. Health Republic Insurance Co-op - New York
6. Kentucky Health Cooperative - Kentucky
That's a 26% failure rate. The Feds said last week that they expect to "lose a few more" Co-Ops. Hurting American Citizens obviously means nothing to these callous bureaucrats. They used taxpayer money to test a crazy theory that's failing miserably. What we're seeing is a microcosm of what would happen to an underfunded national Single-Payer system.
ac
Time to update the chart...
We started with 23 state Co-ops... These have gone belly-up during just two open enrollments:
1. Vermont - Was squashed based on poor projections.
2. Co-Opportunity Health - Iowa/Nebraska
3. Louisiana Health Cooperative - Louisiana
4. Nevada Health Co-op - Nevada
5. Health Republic Insurance Co-op - New York
6. Kentucky Health Cooperative - Kentucky
That's a 26% failure rate. The Feds said last week that they expect to "lose a few more" Co-Ops. Hurting American Citizens obviously means nothing to these callous bureaucrats. They used taxpayer money to test a crazy theory that's failing miserably. What we're seeing is a microcosm of what would happen to an underfunded national Single-Payer system.
ac
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The $61 million in capital included the anticipated gain from risk corridors, before the 12.6% result came out. There are a few others upside down as well.
Do you think Meritus in AZ will be able to survive the entire 2016 year with this risk corridor loss news?
Claim lag, especially on new business, is tricky to predict. Cash flow pricing is guaranteed to sink anyone. Doesn't help when the govt gives out false hopes based on incredibly stupid assumptions (such as taking money from profitable carriers to give to the losers). That is a Saul Alinsky type of plan.
Community organizers should not be given the keys to the kingdom or put in charge of something as big as a country when they have never held a real job or had to make payroll.
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