Of the 23 consumer oriented and operated plans (or ‘Co-Ops’) created under the Affordable Care Act, eight have either closed or announced their closure—with Oregon’s and Colorado’s being the latest to announce their closure last Friday.
Health Republic Insurance of Oregon announced Friday afternoon it would not be offering plans to consumers either on Obamacare’s health insurance exchange or off the exchange in 2016. Colorado’s co-op, Colorado HealthOP, also said Friday that it, too, would be winding down operations.
The companies are two of the 23 original co-ops, or consumer oriented and operated plans, backed by $2.4 billion in start-up and solvency loans. Health Republic Insurance of Oregon received $60.6 million in taxpayer-backed loans, and Colorado HealthOP received $72.3 million.
The co-ops’ decisions to cease operations came just days after two others, Kentucky Health Cooperative and Tennessee Community Health Alliance, said they would be closing their doors.
Taxpayers, under ObamaCare, funded 23 co-ops with $2.4 billion in low interest loans, according to the Wall Street Journal.
So far, more than 500,000 customers have lost their co-op coverage, and co-op officials said their demise will hurt competition, leading to higher prices for consumers.
Most of the remaining co-ops are losing money and have lower-than-expected enrollment, according to a recent report by the Health and Human Services Office of Inspector General.
Providers are blaming the Obama administration for providing just 12.6% of money they requested from a program known as risk corridors that aims to ease financial risk.