As the list of failing CO-OPs continues to grow, it's beginning to seem like the model may, in fact, be fatally flawed. When the only such example to actually turn a profit make money* starts faltering, well then perhaps it's time to re-think the whole concept:
"Maine's Community Health Options lost more than $17 million in the first nine months of this year, after making $10.9 million in the same period last year."
There's now less than a dozen of these organizations left, just under half of the total number of them started.
On the other hand, how many new carriers of any model actually break even (let alone make a profit) in their first years of operation?
So, will they still be standing this time next year? Uber-wonk Bob Laszewski is skeptical, and he's got a pretty good track record on these kinds of things. I've actually been pretty impressed with the local one (InHealth): strong network, good plan designs, decent rates.
Time will tell, of course.
*These are, after all, non-profits, so....
"Maine's Community Health Options lost more than $17 million in the first nine months of this year, after making $10.9 million in the same period last year."
There's now less than a dozen of these organizations left, just under half of the total number of them started.
On the other hand, how many new carriers of any model actually break even (let alone make a profit) in their first years of operation?
So, will they still be standing this time next year? Uber-wonk Bob Laszewski is skeptical, and he's got a pretty good track record on these kinds of things. I've actually been pretty impressed with the local one (InHealth): strong network, good plan designs, decent rates.
Time will tell, of course.
*These are, after all, non-profits, so....
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