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

[Ann H]

In some states, the DOI was warning these co-ops and other insurers that the Risk Corridor payments would be about 10% to 12% of what was expected. It turned out to be 12.6% average. In the meantime, CMS was telling the insurers they expected 100%. Insurers (including co-ops) that wrote down that receivable during the year are in a better position now than the ones that waited until the last minute, and are therefore finding themselves insolvent or otherwise unable to offer products in 2016.

There will undoubtedly be more of these announcements in the weeks heading up to OEP. A lot of co-ops were caught in this dilemma.

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PostQuartermaster just posted the TN co-op failure in the "Risk Adjustments to Obamacare" thread.

CROMNIBUS just claimed another Co-Op. Tennessee's CHA went into runoff this morning.....


https://tn.gov/commerce/news/18562

 

[TN_agent]

I figured as much this morning when I got a mysterious "all training is cancelled" email.

 

[AllenChicago]

October 14, 2015

Ref: Knoxville-based co-op health insurer to shut down in 2016

With today's announcement that Tennessee's Co-Op will soon be shutting down,

It's time to update the list..

We started with 23 state Co-ops. These have gone belly-up after 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

7. Community Health Alliance - Tennessee

That's a 30% failure rate. The Feds say 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

 

[somarco]

What we're seeing is a microcosm of what would happen to an underfunded national Single-Payer system.

Yet some will fail to connect the dots.

This is why Medicare for all won't work.

And this.

If socialized, single payer works so well why is it crumbling all over Europe?

 

[Yagents]

I can't believe it (really I do), another one gone? Colorado CO-OP closes.

Largest health insurer on Colorado exchange collapses - Washington Times

Largest Health Insurer On Colorado Exchange Collapses

 

[Winter_123]

Change you can believe in.

Oregon insurer Health Republic to shut down in 2016, cites $20 million federal hit | OregonLive.com

 

[AllenChicago]

October 16, 2015

With today's announcement that Colorado and Oregon Consumer Operated and Oriented Plans will soon be shutting down,

It's time to update the list..

We started with 23 state Co-ops on January 1, 2014. These have gone belly-up after 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

7. Community Health Alliance - Tennessee

8. Colorado HealthOP - Colorado

9. Health Republic Insurance - Oregon (1 of 2 in the state)

That's a 39% failure rate for this U.S. Government experiment. The Feds say 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 witnessing is a microcosm of what would happen to an underfunded national Single-Payer system.

ac

 

[somarco]

I believe Romney said Obama had a knack for picking losers. Seems he was right.

 

[Yagents]

Valid quote in that Oregon article. Who else is got that lovin' feeling?

Will you sell a Co-Op next year if your state has one?

On top of that, the rapid pace of failure of other nonprofit federal health insurer startups in recent weeks made Health Republic pessimistic about whether brokers would feel comfortable selling its 2016 policies.

 

[AllenChicago]

Valid quote in that Oregon article. Who else is got that lovin' feeling?

Will you sell a Co-Op next year if your state has one?

If the Premium and PPO Network are like 2015, I'll continue to sell our LOLH state Co-op to healthy consumers in 2016...assuming it makes it to 2016. Co-ops in stronger financial positions than Land of Lincoln Health, are calling it quits.