6 Insurance Companies Created Under Obamacare Collapsed
A government watchdog overseeing the Department of Health and Human Services delivered the grim financial state of nearly all of the co-ops—that collectively received $2.4 billion—created under Obamacare several months ago.Now, following the collapse of six of the 23 that launched in 2013, the co-ops, or consumer oriented and operated plans, face an uphill battle to solidify themselves as competitors in the health insurance market.To assist the co-ops in getting off the ground, the Centers for Medicare and Medicaid Services disbursed $2.4 billion in start-up and solvency loans to the 23 co-ops created under Obamacare.However, over the last 10 months, six co-ops, which collectively received nearly $762 million from the federal government, announced they’re closing their doors and pulling out of the insurance market for 2016.As a result, more than 420,000 Americans who enrolled in health insurance coverage through the nonprofit insurers will lose their insurance and have been instructed to select new plans next year.
Source: 6 Insurance Companies Created Under Obamacare Collapsed
