Saturday, July 25, 2015

Another Obamacare Co-op Departs

As 2016 approaches when the bell rings for round 3 of Obamacare (full Monty version) the Louisiana Health Cooperative will stay in their corner.

Louisiana Health Cooperative Inc., a nonprofit health insurer created with a $65.8 million federal loan under the health care law is winding down its operations at the end of the year and will not offer coverage in 2016. - New Orleans Advocate
That's another $65 million in taxpayer money pissed away by the Obama administration.

In the two years they were in operation they issued policies on 17,000 residents that applied through the exchange.
The Louisiana co-op was one of 23 companies created nationally by the Affordable Care Act and $2 billion in total loans. The Consumer Operated and Oriented Plans, or CO-OPs, were designed to ensure competition and offer affordable and innovative alternatives to the coverage offered by private insurance companies.
Care to guess what the track record is for these creations?

According to Standard and Poor .......
All but one of the [23] co-ops included in our study reported negative net income through the first three quarters of 2014. … Most co-ops’ weak operating performance is a result of high medical claims trend and not enough scale to offset administrative costs. … In fact, nine of the co-ops (including CoOportunity Health) reported a MLR [i.e., medical loss ratio; the claims compared to premiums] of 100% or more through September 2014.”
During the 2012 presidential debates, Gov. Romney observed the following regarding Obama's "green energy" stimulus programs.  In one year alone, Obama provided $90 BILLION in tax credits to firms like Tesla, Solyndra and Fisker. Romney's summation of this failed policy?

"You don't just pick the winners and losers, you pick the losers."

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