Friday, October 16, 2015

Finally: Some *Good* CO-OP news

With all the disheartening CO-OP news lately, it's rather refreshing to find a reasonably sound one. And even better, one that I've been fortunate enough to recommend to some of my clients.

Headquartered near Columbus (OH), InHealth Mutual is a product of the ObamaTax, and, like its brethren, it relies on more than a few shekels from Uncle Sugar. This of course leads to sometimes problematic outcomes; for example, the company's currently under what's called "enhanced oversight" due to some rather substantial losses. As a result, they're "one of about two dozen ... co-ops nationwide that are receiving a combined $2.4 billion in loans" from the Feds.

On the other hand, head honcho Jesse Thomas is convinced that they can ride this out, and end up in the black. One reason he's so bullish on the company's future is that its "financial health ... remains higher than required" by both the state's Department of Insurance and the Feds. They're not out of the woods yet, of course; one way they're hoping to increase that cash flow is by convincing providers to accept lower reimbursements (that's probably easier said than done).

Time will tell, of course.

[Hat Tip: FoIB Colleen G]
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