Skip to comments.Kentucky nonprofit health insurer to shut down
Posted on 10/10/2015 9:12:07 AM PDT by EXCH54FE
Kentuckys nonprofit health insurer set up under ObamaCare is shutting down because of financial problems, the latest in a string of closures for the nonprofit plans around the country.
Kentucky Health Cooperative, a nonprofit insurer known as a co-op, explained that it could not stay financially afloat after learning of a low payment from an ObamaCare program called risk corridors. That program was intended to protect insurers from heavy losses in the early years of the health law by taking money from better-performing insurers and giving it to worse-performing ones.
However, the Obama administration announced on Oct. 1 that the program would pay out far less than requested, because the payments coming in were not enough to match what insurers requested to be paid. Therefore, insurers only will receive 12.6 percent of the $2.87 billion they requested.
It is with sadness that we announce this decision," the insurers CEO, Glenn Jennings, said in a statement. "This very difficult choice was made after much deliberation. If there were a way to avoid it and simultaneously do right by the members, providers and all others that we serve, we would do so.
The Department of Health and Human Services says that it recognizes that the low payments to insurers could have raised financial concerns for some insurers, and that as start-ups, not all co-ops would succeed.
The Obama administration said when making the risk corridor announcement earlier this month that the low payments could cause isolated solvency and liquidity challenges for a small number of insurers.
(Excerpt) Read more at thehill.com ...
It would appear that the liberal myth about “free” healthcare is just that. A myth. It isn’t a “right” either. Liberals are FOS.
The curse known as “MATH” strikes again.
It’s ironic that the greatest bulk of bankruptcies were due to medical expenses. Now, even the insurance companies can’t keep up either. Obama care is NOT the answer, obviously.
One more step towards single-payer, the ultimate goal.
All part of The Plan to get to single payer.
Needs to be repeated.
It’s like finding out that Mickey Mouse isn’t real.
I see they are using the time honored "US Postal Service" business model.
non-profit = no-workie
wasn’t this part of the kentucky exchange which is held up as the gold standard by liberals??
“Nonprofit” can work just fine...but it still has to have a sustainable model. Obamacare is not that.
Indeed it was.
My thought is: who has standing to sue these non-profit executives? You know they backed the legislation, and you know they reaped large compensation all the while they were piloting a venture that was destined to end as it has here. There were no shareholders who were defrauded, but it would seem that you could make the case that by promoting (and managing) these ventures they hurt taxpayers but toasting more of our money.
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