Jun 07, 2016
Ohio Obamacare CO-OP Collapses Leaving 22,000 to Find New Coverage
Post by Derek Yale
Only ten of the original 24 Affordable Care Act Consumer-Oriented-and-Operated Plans (CO-OPs) remain after Ohio’s CO-OP health plan, InHealth Mutual, announced that it will shut down.
InHealth Mutual’s failure means that nearly 22,000 Ohioans will be left to find coverage within just 60 days, and $129 million in taxpayer funded loans may never be recovered.
Created under the ACA, CO-OP plans were meant to provide a public, nonprofit alternative to the private plans on the exchanges—intended to be a visible demonstration of how effective government-run insurance would be.
Now, 13 of the original 23 CO-OPs have collapsed due to losses – if you exclude the additional one that never even opened its doors. To date, over 1.4 billion taxpayer dollars have been wasted due to the failing CO-OP experiment.
Ohio’s CO-OP is the first this year to collapse, but it likely won’t be the last. A March report from the Government Accountability Office (GAO) indicated that several of the remaining CO-OPs were on the path to insolvency. According to the report, six of the remaining CO-OPs did not meet their individual enrollment projections for 2015 and four of those six did not even reach the 25,000 program benchmarks for enrollment.
As these Obamacare CO-OPs collapse before our eyes, it’s remarkably clear that bureaucrats are throwing taxpayer dollars at a failed government experiment.
The government should reverse course on the CO-OP disaster and the Affordable Care Act as a whole before more plans are cancelled, more taxpayer dollars are wasted, and healthcare becomes even more unaffordable.