This wasn’t supposed to happen.
With the mainstream media, at least the majority that is left of center, flooded with story after story touting Obamacare’s success, the news coming this morning from Denver that Colorado’s largest nonprofit health insurer and participant in that state’s insurance exchange Colorado HealthOP is abruptly shutting down, forcing 80,000 Coloradans to find a new insurer for 2016, was a slap in the face for the Obama administration’s crowning achievement.
According to AP, the health insurer announced Friday that the state Division of Insurance has de-certified it as an eligible insurance company. That’s because the cooperative relied on federal support, and federal authorities announced last month they wouldn’t be able to pay most of what they owed in a program designed to help health insurance co-ops get established.
Wait, wasn’t the whole point behind Obamacare to subsidize health insurance for everyone, and especially the poor? Or was the whole point of the “Affordable” Care Act merely to herd as many Americans into the clutches of the few for-profits, after the non-profit cooperatives finally read the fine print and realized they have no chance of being profitable under the new regime?
The plot thickens: in a statement announcing its closure Friday, Colorado HealthOP said it was “well on its way” to repaying some $72.3 million it has borrowed from the federal fund. The co-op reported a net loss of $23 million last year. In other words, the company burned through some $23 million in taxpayer funds and it didn’t even get a lousy shirt to show for it.
Ironically, on the company’s website, we read the following about the Co-Op’s business model:
if our revenues exceed our costs, the surplus will be reinvested to directly benefit members—through lower premiums, expanded benefits, or quality improvements.
And as more Americans get letters in the mail such as the one below kindly informing them their health insurance premiums are rising by 60% crushing any desire to splurge modest “gas savings” on discretionary purchases…
…expect complaints about soaring health insurance prices, to hit – first in Colorado and then everywhere else.
Full article: Obamacare’s Latest Casualty: Largest Health Insurer On Colorado Exchange Abruptly Collapses (Zero Hedge)