Dec 18, 2015
Video: Obamacare Co-Ops Explained
Post by Derek Yale
Freedom Partners released a new video explaining the origin of the Obamacare CO-OPs, why they failed, and how to prevent similar government intervention in American health care moving forward.
Under the Affordable Care Act, the federal government originally created 24 CO-OPs using $2.4 billion in taxpayer-backed federal loans. As of today, 13 of those CO-OPs have failed and most of the remaining CO-OPs are on the path to insolvency. As a result, more than 750,00o Americans have been kicked off of their plans.
“The CO-OP business model is to offer artificially under-priced plans guaranteed by federal bailouts — our tax dollars,” says Freedom Partners Senior Policy Advisor Nathan Nascimento in the video. “Despite early warnings that the CO-OPs would become insolvent, the Obama administration permitted them to survive through accounting gimmicks like counting taxpayer-funded loans as assets.”
“So far, the failed CO-OPs have wasted more than $1.2 billion in taxpayer dollars,” he continues. “And if other CO-OPs fail — as the Obama administration admits will happen — the losses will only increase. This is what happens when Washington manages our health care.”