8 Out Of 11 Remaining Obamacare Exchanges On Verge Of Collapse

Of course, Cohen didn’t come out with this devastating assessment of Obamacare because she wanted to. She only fessed up to it after hours of being grilled by Congressional Republicans, whom she attempted to stonewall for the vast majority of time speaking to them. The little that she did reveal incontrovertibly proves that the administration’s health system is a disaster waiting to turn into an outright catastrophe.

“Twenty three of the non-profit co-ops were established under Obamacare in 2012 to compete with commercial for-profit insurance companies. But so far half — or 12 — have closed their doors after only two years of operation. A thirteenth co-op in Vermont was never licensed to operate.

Cohen stubbornly refused to disclose which of the remaining 11 are struggling, but conceded that eight now face either federal ‘enhanced oversight’ or are operating under a federal ‘corrective action plan.’”

Cohen refused to guarantee any of the three co-ops not presently operating under a corrective plan would survive the year. “Too early to tell in the year,” Cohen said. “As new information comes up, if we need to, we will put more folks up on corrective action plans.”

The CMS corrective plans identify operational problems, management deficiencies, poor vendor oversight, pricing problems, an inadequate medical network or a deficient business strategy, according to Cohen.

The co-ops face “challenges,” Cohen told the panel, but refused to predict which are likely to fail, saying “they don’t fix overnight.” She also declined to estimate how much more taxpayers will lose on the co-op program or how much, if any, will be recovered.

“We are just learning how much we will lose,” she said.
About $1.4 billion of the $2.5 billion in Obamacare loan funding was lost when the 12 failed co-ops went under.

Cohen ominously hinted that many local hospitals, medical clinics and doctors may not be paid for services they delivered to co-op patients, because federal law requires that the government be first in line among creditors.

“For federal loans, there is an order of repayment,” she said. “I believe we are at the very top of all of the creditors,” but who gets paid “is on a case-by-case basis” determined by the Justice Department.

Source: Daily Caller