The death knell has sounded for Obamacare’s co-ops, as two more have gone under in just the past week alone.
This most recent string of failures means that only a third of Obamacare co-ops are still in operation, according to the Washington Free Beacon. What’s more, it doesn’t appear that the remaining co-ops are long for this world.
Connecticut’s HealthyCT co-op, which folded after being forced to pay $13.4 million for the Affordable Care Act’s risk adjustment program, was “placed under an immediate order of the supervision on July 5,” the Beacon reports.
“It became evident that this risk adjustment mandate would put the company under significant financial strain,” said Katharine Wade, Connecticut’s insurance manager, in an interview with the Beacon. “This order of supervision provides for an orderly run-off of the company’s claim payment under close regulatory oversight.”
And while Obamacare supporters have long tried to claim these failures are one-off incidents – despite two thirds now having gone under – it only took three days for another co-op to fail, this time in Oregon.
The Washington Free Beacon reports:
The Oregon Department of Consumer and Business Services announced it would place Oregon’s Health Co-Op in receivership and liquidate the company’s assets. The co-op lost $18.4 million in 2015 due to medical claims and individual policies and owes $900,000 to pay for Obamacare’s risk adjustment program. The co-op was awarded a total of $56.7 million from the Centers for Medicare and Medicaid Services.
“We understand changing plans in the middle of the year will be difficult for Oregonians, but this action was necessary given the sudden deterioration of the company’s financial position,” said Patrick Allen, director of the department. “Unfortunately, as a startup, Oregon’s Health CO-OP is not in a position to sustain these losses while meeting its obligations to policyholders.”
As of now, only 8 of the original 23 Obamacare co-ops remain standing. Meanwhile, experts on the matter, including Dr. Scott Harrington of the Wharton School, predict further losses will mark the death of all co-ops given the unsustainable nature of their makeup under the Affordable Care Act.
It’s just a matter of time.
Head over to the Washington Free Beacon for the full story.