ZitatMore bad news for Obamacare’s health insurance co-ops: New York state’s Health Republic, which, with about 200,000 members, was the largest of the non-profit health insurers set up under the law, announced last week that it will stop writing policies at the end of the year.
Effectively, it’s shutting down.
The shut down comes at the behest of both state overseers and federal health officials, which concluded that the insurer, which was founded with backing from federal loans made available under the president’s health law, didn’t have any plausible path to financial stability.
Despite attracting more sign-ups than any other co-op, Health Republic lost about $130 million during its first year and a half in operation. While other co-op plans have struggled with low enrollment, the deeper problem for all of the plans is that beneficiaries appear to be sicker, and thus more expensive to cover, than expected.
Health Republic was one of nearly two dozen co-op plans backed by $2.4 billion in federal loans under the law, many of which are now struggling financially. Co-ops in Louisiana, Nevada, and Iowa have already closed down or announced plans to shutter, and a report this summer from the Health and Human Services Inspector General found that all but one of the plans lost money last year, and that there was a real possibility that many of the plans would not be able to repay their loans.
While some of Obamacare's co-ops may survive, it seems likely, given their generally precarious finances, that several more will eventually cease operations, and that taxpayers will ultimately end up shortchanged on much of the "loan" money that was used to help start the program.
Part of Debra Friedman's statement [CEO of Health Republic]:
"I deeply regret to inform you that after coordinating with state and federal regulators, Health Republic will begin winding down operations in an orderly manner starting today. While we are deeply disappointed with this outcome, we believe it is in the best interests of our members. Starting a new insurance company is a daunting task in any environment, but the systemic challenges placed on us by the structure of the CO-OP program were simply too difficult to overcome."
******* The world will not be destroyed by those who do evil ... but by those who watch them and do nothing. -- Albert Einstein
Gutiérrez says access to Obamacare is a moral imperative for all, regardless of legal status. He’s introduced legislation that would expand access to President Obama’s signature healthcare law to illegal immigrants.
Speaking on the House Floor, Gutiérrez recalled Pope Francis’ address to Congress, saying the pontiff inspired him and other Members to remember the Golden Rule — “Do unto others as you would have them do unto you.”
“That is why I am introducing the Exchange Inclusion for a Healthy America Act of 2015, a bill to give people complete access to the Affordable Care Act regardless of their immigration status,” Illinois Democrat said.
Gutiérrez’s bill, if passed, would open the Obamacare exchanges to illegal immigrants, subject them to the individual mandate, and make them eligible for the same subsidies Americans are able to access.
“The goal is to make integration and inclusion real for millions of families that are locked out under current law,” he said.
According to Gutiérrez, his legislation “says we stand for inclusion.”
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[Pass this! It's for the Pope!!! He forgot to mention, "It's for the kids!" TM]
******* The world will not be destroyed by those who do evil ... but by those who watch them and do nothing. -- Albert Einstein
While some of Obamacare's co-ops may survive, it seems likely, given their generally precarious finances, that several more will eventually cease operations, and that taxpayers will ultimately end up shortchanged on much of the "loan" money that was used to help start the program.