Nearly Half of the Non-Profit Ins. ACA Plans Will Close by Year End.

Nearly half of the 23 non-profit insurance plans created under Obamacare in 2011 at a cost of $2.4 billion have announced they will close by the end of the year.

Utah’s Arches Health Plan on Tuesday became the 10th health insurance co-op to announce that it was closing its doors. The move comes soon after the Obama administration’s decision on Oct. 1 to provide just 12.6 percent of the $2.87 billion that insurers were seeking to offset losses caused by unexpectedly high coverage costs.

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Even some senior Senate Democrats, including Sen. Chuck Schumer of New York – a state where more than 150,000 people will be losing their co-op insurance -- told The Fiscal Times last week that they were unaware of the crisis.

Last Friday, Consumers’ Choice Health Insurance Company in South Carolina announced that it, too, was going out of business – a decision that will send about 67,000 people and small businesses scrambling to find new health coverage.

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The crisis was foreshadowed earlier this year when the Centers for Medicare and Medicaid Services (CMS), which oversees Obamacare, issued warning letters to 11 of the co-ops, placing them under special scrutiny and requiring that they produce a plan of “corrective action.” A report last July by the Inspector General of the Department of Health and Human Services said that 21 of the 23 co-ops reviewed had incurred net losses between Jan. 1 and Dec. 31 in 2014. Moreover, 19 of the 23 showed net financial losses because the claims they received exceeded premium revenue.

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JumpinJack said:

Nearly half of Obamacare co-ops are closing - Yahoo Finance

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joG said:

Not everything works out as planned.

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JumpinJack said:

Your response is like telling someone who's hungry but can't get food stamps, "Well, things don't always work out. A pity. You just need to wait for the magic to work."

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