Minuteman draws $100M from feds to deal with Obamacare; alternative to bankruptcy or being 'lucky'

Boston Business Journal ^ | February 25, 2016 | by Jessica Bartlett

[Oldeconomybuyer]

Minuteman Health has drawn down $100 million in federal loans in anticipation of continued losses from the Affordable Care Act.

The Massachusetts co-op insurer, which also operates in New Hampshire, will report the draw down and a second-consecutive year of operating losses as part of its fiscal 2015 financials.

Minuteman officials said the borrowings are needed to offset certain components of Obamacare, which financially punish insurers for doing the very things the federal law was intended to address: to provide affordable health insurance to previously uncovered segments of the population.

What ObamaCare's architects didn't anticipate, and what local insurers are now grappling with, are the unintended consequences of that market manipulation. Specifically, healthy insurers who have reported profitable enrollment and revenue growth under the ACA now say they are being unfairly squeezed by ObamaCare's risk-adjustment mandates, which have required some of them to fork over tens-of-millions of dollars to their competitors in order to comply with the law.

[Oldeconomybuyer]

FULL TITLE: "Minuteman draws down $100M from feds to deal with Obamacare; an alternative to bankruptcy or being 'lucky'"

<<< What ObamaCare's architects didn't anticipate >>>

The risk corridor was anticipated. Ask Jonathan Gruber.

[DoughtyOne]

Folks, if you're reading this, you know what needs to happen.
It doesn't take a big contribution. Pick your comfort level and
please join others and me to help put the FReepathon to rest. Thank you.

[KC_Lion]

[PAR35]

It isn’t a loan if neither party ever expects it to be paid back.

[PGR88]

My “co-op” insurer here in New York declared bankruptcy after 1 year. They had screwed up paper on a claim, which I was chasing them on before bankruptcy, and of course, it was never fixed when they went under. So now I have a bill collector chasing me for the money.

thanks Obama!

[libertylover]

certain components of Obamacare, which financially punish insurers for doing the very things the federal law was intended to address: to provide affordable health insurance to previously uncovered segments of the population

No, it's working as planned, to drive the insurance companies out of business so that Democrats can step in with a single-payer system.

[BenLurkin]

Excellent

[Texas resident]

Makes you wonder if the insurance execs were either clueless about the outcome of o’care, or they were “encouraged” to play along. I think they were told that they would go with the plan or else be visited by a bunch of federal agencies.