One of the provisions of our national socialist healthcare system otherwise known as Obamacare, was to establish a Consumer Operated and Oriented Plan Program (CO-OP) in all fifty states. The Democratic controlled Congress at the time voted to spend $6 billion of taxpayer money to help establish and fund these CO-OPs. They were designed to help lower the cost of healthcare coverage for millions of Americans.
“When the new health-care law was being cobbled together, Congress decided to establish a network of nonprofit insurance companies aimed at bringing competition to the marketplace, long dominated by major insurers.
But these co-ops, started as a great hope for lowering insurance costs, are already in danger.
While the debut of the Affordable Care Act this month has been marred by widespread computer problems, the difficulties the co-ops face have been less obvious to consumers. One co-op, however, has closed, another is struggling, and at least nine more have been projected to have financial problems, according to internal government reviews and a federal audit.
Their failure would leave taxpayers potentially on the hook for nearly $1 billion in defaulted loans and rob the marketplace of the kind of competition they were supposed to create. And if they become insolvent, policyholders in at least half the states where the co-ops operate could be stuck with medical bills.”
Over the past year, the situation with the CO-OPs has continued to deteriorate. Judicial Watch is reporting:
“More than half of the government-funded nonprofit health insurers created by Obamacare have failed, sticking taxpayers with a $1.2 billion tab and leaving hundreds of thousands of people in more than a dozen states scrambling for medical coverage, a new federal audit reveals. The nonprofit insurers are known as Consumer Operated and Oriented Plan Program (CO-OP) and the Department of Health and Human Services (HHS) has pumped $2.4 billion into them under the president’s hostile takeover of the nation’s healthcare system.
Congress initially allocated $6 billion for the Obamacare CO-OP program, with the goal of establishing CO-OPs in all 50 states as well as the District of Columbia. Thankfully, subsequent legislation slashed funding for the ill-fated experiment. In all, HHS has funded 23 of these dubious enterprises and 12 have already gone under after losing an astounding $1.2 billion that’s unlikely to ever be recovered. As a result 740,000 people in 14 states must search for new medical coverage they thought they had under the disastrous Obamacare plan. Every resident of the United States who pays taxes should be outraged by this monstrous failure, exposed in great detail in a scathing report published by the Senate Homeland Security and Governmental Affairs Committee. The committee’s probe reveals that, even when the CO-OPs showed clear signs of financial failure, HHS kept giving them huge amounts of money in the form of ‘loans’ the agency knew would never be repaid. In fact, HHS officials knew of serious problems with enrollment strategies, financial forecasts, management and pricing before approving the first loan, according to the panel’s findings. ‘HHS approved the failed CO-OPs despite receiving specific warnings from a third-party analyst about weaknesses in their business plans,’ the report states.”
Obamacare is no different than Obama’s green energy programs. It’s costing US taxpayers billions of dollars for one failed CO-OP or green energy program after another. The failed green energy programs have resulted in thousands of workers losing their jobs and the failed CO-OPs resulting in hundreds of thousands of Americans losing their healthcare coverage.
The scariest aspect of all of this is that if Hillary Clinton wins the election in November, we’ll likely have at least four more years of financial disasters set up by Obama and continued by Clinton. The question is, how much more can our nation withstand before we fall into economic chaos from which there is no escape?