Monday, June 08, 2015

Obamacare Health Co-ops Circling the Drain

Health insurance co-ops are looking puny these days. Seems to be a rash of terminal losses accompanied by substantial rate increases.
Blue Cross and Blue Shield of Montana is asking regulators to approve an average increase of about 22 percent over the rates approved in 2015 for its individual plans. PacificSource is asking for an average 32 percent increase. The Montana Health Cooperative is requesting an average 34 percent increase. - KULR8
And then there is this earlier report from AM Best.
only one Co-op, Maine Community Health Options, reported both favorable underwriting and net income at $10.9 million. All other Co-ops reported both underwriting and net losses
Net losses through Sept. 30, 2014 ranged from $2.6 million for Montana Health Cooperative to a loss of $39.8 million at CoOportunity Health. The aggregated underwriting loss was $243.6 million at Sept. 30, compared with $72.3 million for the first quarter of 2014. 

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