Obamacare Co-Op Mess Nets Loss Of $1.3 Billion

As more health insurance co-ops are defaulting, the net loss of Obamacare has reached over 1.3 billion dollars.

The insolvencies, totaling $1.36 billion, mean that the co-ops have burned through more than half of the original $2 billion appropriated in 2010 for the program under the Affordable Care Act. The funds were loaned to the start-up co-ops in 2012 and were to be repaid in 15 years, according to the Centers for Medicare and Medicaid Services, which manages Obamacare.

Instead, 13 of the 23 federally-financed Obamacare co-ops have officially failed in only two years. Most are in the process of default as insurance regulators attempt to pay customer’s medical bills, cover medical providers and pay other creditors.

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Many of the co-ops blame their financial crisis on the enrollment of a sicker population than expected. Many also found they face financial peril because their premium income did not cover the cost of claims.

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President Obama backed creation of the co-ops in place of a government-run single-payer proposal that was deemed too expensive by some congressional Democrats. The co-op program was originally slated to receive $6 billion to establish operations in all 50 states as a means of providing publicly funded competition to private for-profit insurers.

Congress reduced the appropriation to $2 billion, which Democrats now say isn’t enough. Federal officials gave no indication last year that the co-ops were in distress, and even expanded the program from 24 to 28 states.

Source: The Daily Caller

As was predicted, Obamacare is failing to provide the services it promised and is proving to be a greater burden on the taxpayer than anyone is happy with.

With hundred of thousands of people now at a loss for what to do about their healthcare and the bill rising daily, it’s time for Congress to rescind this grave mistake and let the free-market do its job. It’s been said before, but if the whole class can say it along: Socialism doesn’t work!