The Obama Administration is hanging "Do Not Resuscitate" signs on failed ObamaCare co-ops.
The latest ObamaCare co-op to call it quits was in Arizona, which last week admitted insurmountable financial problems. That brought the total of failed co-ops to 11 out of 23. The Arizona Department of Insurance announced that Meritus Health Partner/Meritus Mutual Health Partners has been placed under “supervision” and would only serve clients through the end of this year.
That means one in three Arizonans has in effect lost healthcare coverage and joined the hundreds of thousands of Americans across the country in the same boat. So far, Colorado, Iowa, Kentucky, Utah, Louisiana, New York, Nevada, Tennessee, Oregon, and South Carolina have all collapsed.
During a congressional hearing, officials from the Centers for Medicare and Medicaid Services (CMS) pretty much threw up their hands and admitted that not much can be done. Other co-ops are on life support.
Business Insider reports:
“For co-ops that will not sell coverage on the marketplaces in 2016, CMS is working collaboratively with [state insurance offices] and the co-ops to wind down their operations in an orderly way, while minimizing disruptions to consumers,” [Mandy] Cohen told Republican and Democratic lawmakers.
As for the hundreds of thousands of Americans who face the loss of their health care coverage with the demise of many co-ops across the country, Cohen’s only consolation was that they are free to seek replacement policies through regular Obamacare insurance markets, which have begun accepting enrollments for 2016.
The driver of costs for co-ops is that more older and sicker people have signed up than younger and healthier ones. The Administration, apparently sensing a looming disaster, sent warning letters to about a dozen co-ops that were placed under special scrutiny because they were at risk of financial collapse.
A critique from Republican Rep. Kevin Brady from Texas during the hearing was right on point:
“Supporters of this program argued it would increase competition in the individual and small group health insurance markets,” he said… “Only in Washington would a group of bureaucrats think they knew how to micromanage competition instead of letting consumers and markets do what they do best.”
Brady charged that CMS “essentially allowed anyone to participate in the program, regardless of whether he or she had any prior experience running an insurance company.” As for financing, he added, the administration dipped heavily into government revenues to provide two types of loans –start up loans and loans to assure continued solvency, “both with incredibly favorable loans terms.”
“What’s most surprising about this situation is the Administration knew this was coming,” he added. “Their own credit estimates project massive losses for the program…”
ObamaCare supporters predictably blame conservatives and claim more money would solve their problems. However, if they were truly on track for independence and success we should be closing not opening the spigot that kept tax dollars flowing to them?
So far we’ve already poured $2.4 billion down the co-op hole to pay for -among many wasteful spending- lavish salaries of executives. For our tax dollars the Administration delivered government-sponsored healthcare monopolies with expensive plans.