When they were first introduced via the ObamaTax, "Consumer Operated and Oriented Plans (CO-OP's) were ... an alternative to private health plans that are being offered to individuals and employer sponsored plans." They were touted as "start up insurance companies funded with taxpayer money that was set aside in the law. Each state was to have at least one or two of these not-for profit operations that would keep "profit mongering" private health insurance companies from paying extreme salaries to executives and huge dividends to wealthy investors."
As with most such initiatives based more on good intentions than sound economics, that hasn't worked out so well in practice. For example, as Patrick mentioned earlier this morning, the Blue Grass State's incarnation of this program has assumed room temperature (no surprise, as it's due to receive less than 12% of the risk corridor funds it was promised).
But it gets worse (depending on one's perspective, I suppose). Co-blogger Bob tips us to this disturbing (but inevitable) news:
"Half of Obamacare co-ops have eroding financial health."
The WashPo folks have even included a handy table to track these oncoming train-wrecks; it's not a pretty sight. If one were a betting person, I'd recommend $20 on Louisiana to go next.
But hey: rousing success.
As with most such initiatives based more on good intentions than sound economics, that hasn't worked out so well in practice. For example, as Patrick mentioned earlier this morning, the Blue Grass State's incarnation of this program has assumed room temperature (no surprise, as it's due to receive less than 12% of the risk corridor funds it was promised).
But it gets worse (depending on one's perspective, I suppose). Co-blogger Bob tips us to this disturbing (but inevitable) news:
"Half of Obamacare co-ops have eroding financial health."
The WashPo folks have even included a handy table to track these oncoming train-wrecks; it's not a pretty sight. If one were a betting person, I'd recommend $20 on Louisiana to go next.
But hey: rousing success.
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