A startup insurance company loaned $145 million by the U.S. government under Obamacare is running out of money and being taken over by state officials in Iowa. (emphasis added)
The company, CoOportunity Health, which also serves Nebraska, was placed under Iowa Insurance Commissioner Nick Gerhart’s supervision this week and is no longer accepting new enrollees, according to a statement from his office. While Gerhart’s agency will operate the company for the time being, it’s urging policyholders to seek a new insurer.
CoOportunity Health is a co-op, or Consumer Operated and Oriented Plan, one of 23 nonprofit health insurers providing coverage in 26 states. They were created under the Patient Protection and Affordable Care Act to increase competition. The fate of CoOportunity provides new fodder for Obamacare opponents who argue that the law wastes government money.
How many insured’s does this affect?
CoOportunity now has 96,350 enrollees, up from 63,000 at the end of March, according to its website. The Centers for Medicare and Medicaid Services provided the insurer $130.6 million in funding for solvency and $15.4 million for operations, according to a legal filing by Gerhart. CMS told CoOportunity Dec. 16 it couldn’t provide more funds. The insurer lost $45.7 million from January to October, according to the petition.
Apparently economies of scale did CoOportunity little good. Inquiring minds want to know how a company with any business sense at all could run through so much cash in so little time? Perhaps the answer is in the question.
One thing will happen for sure, more scrutiny of the Co-op model.
resume’s propaganda sure look good. Either they believed their own bullsh*t or someone’s lying. If above link will work until CoOpportunity changes their website, which I imagine won’t be long!