I have mentioned before that insurance companies who are losing money on the exchange are positioning themselves to be bailed out by taxpayers. Well, remember those health co-ops that were part of the ACA? These were “supported by federal loans, for the creation of nonprofit consumer-governed co-ops to compete with more established health insurance players like the various Blue Cross/Blue Shield organizations as well as giant firms like United Healthcare.
The idea was that the co-ops could provide a lower-cost alternative for people needing insurance coverage.” In NY, the patients paid too little into the co-ops and they burned though the money. Free or almost free isn’t always a good thing. Most co-ops around the country, just like NY, are going belly up. Well, they leave baggage when they do that. It turns out that someone needs to pay for the unpaid doctor and hospital bills remaining. In NY, there is more than $200 million left outstanding. The New York State government is trying to figure this out but we all know what is going to happen. Can you say another bailout? It may not save the co-ops but it will pay people back. Another nice side effect of Obamacare. Isn’t it time we found a better way?