Ad­min­is­tra­tors of not-for-profit health in­sur­ance co-ops told Congress that high claims, fed­eral fund­ing cuts and poor ac­cess to cap­i­tal killed nearly half of the 23 state co-ops es­tab­lished un­der the Af­ford­able Care Act.

Modern Healthcare - - LATE NEWS -

James Donelon, Louisiana in­sur­ance com­mis­sioner, said his state’s co-op was meant to in­crease com­pe­ti­tion, but in­stead quickly found it­self in a dire financial sit­u­a­tion. He likened it to “learn­ing how to sail in a hur­ri­cane.” John Mor­ri­son, vice chair­man of the Mon­tana Health Co-op, said Congress im­peded the suc­cess of the co-ops by cap­ping gov­ern­ment loans, re­strict­ing the use of pri­vate cap­i­tal and not al­low­ing en­roll­ment lim­its in the first year. Dr. Mandy Co­hen, CMS chief op­er­at­ing of­fi­cer, said the first pri­or­ity for clos­ing co-ops is to pay out claims and find new cov­er­age for con­sumers. Then the agency will find ways to re­coup the co-op’s loans.

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