Skip to comments.Health co-ops, created to foster competition and lower insurance costs, are in danger
Posted on 10/22/2013 6:05:28 PM PDT by Brad from TennesseeEdited on 10/22/2013 6:19:25 PM PDT by Admin Moderator. [history]
When the new health-care law was being cobbled together, Congress decided to establish a network of nonprofit insurance companies aimed at bringing competition to the marketplace, long dominated by major insurers.
But these co-ops, started as a great hope for lowering insurance costs, are already in danger.
(Excerpt) Read more at washingtonpost.com ...
For a moment, I thought this was a bad thing, then I saw that it was written by a WaPo minion.
No one gives a smelly Obama.
They are in trouble because they have been stupid and greedy. To grab quick market share from established insurers, one co-op has shown up as the lowest cost offering in my state and likely other exchanges. But with a double whammy from low-signups to Obamacare by the young and healthy, and adverse selection, its advertized rates are almost certain to be way too low. If they last for a full year, to which they are contracted, they’ll need big rate boosts. Presumably they are adequately reserved as per state insurance regs, but who knows? They could well go bust just months into the new year if they are unable to raise their low-ball rates. Then who fulfills their insurance obligations? HHS?
Tried working for a non-profit organ transplant group for a few months several years ago. Had to quit. These people are just from another planet. Talk about wasting money and gross inefficiency! IMO non-profit organizations should not be allowed to exist.