Obama Administration Ignored Warnings About Failed Co-Ops
The Obama administration ignored warnings from a private consulting firm about the viability of nonprofit insurance companies created under Obamacare, which could ultimately cost the taxpayers $1.2 billion doled out in loans to 12 of the insurers.According to the study from Republicans on the Senate Permanent Subcommittee on Investigations, Deloitte Consulting evaluated loan applications and business plans submitted by a dozen now defunct co-ops and expressed concerns about their financial future.The company, hired to evaluate the co-ops’ business plans and loan applications, specifically pointed to issues with the financial forecasts submitted by the nonprofit insurance companies. The consulting firm’s warnings were ignored by the Department of Health and Human Services, according to the subcommittee’s report.“These failed co-ops were a costly experiment gone wrong, and real people got hurt, including the more than 700,000 Americans who lost their health plans,” Sen. Rob Portman, chairman of the subcommittee, said today at a hearing on the co-ops.
Source: Obama Administration Ignored Warnings About Failed Co-Ops
