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Kentucky nonprofit health insurer to shut down
The Hill ^
| 10 Oct 2015
| Peter Sullivan
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 ...
TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: beshear; beshearlegacy; health; insurance; kynect; obamacare
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Twenty-one of 23 co-ops nationwide were losing money as of Dec. 31, the HHS inspector general report found in July. Furthermore, enrollment was falling below projections for 13 of the 23 plans.
1
posted on
10/10/2015 9:12:07 AM PDT
by
EXCH54FE
To: EXCH54FE
It would appear that the liberal myth about “free” healthcare is just that. A myth. It isn’t a “right” either. Liberals are FOS.
2
posted on
10/10/2015 9:17:47 AM PDT
by
FlingWingFlyer
(Normal people don't vote Democrat.)
To: EXCH54FE
The curse known as “MATH” strikes again.
3
posted on
10/10/2015 9:18:20 AM PDT
by
tcrlaf
(They told me it could never happen in America. And then it did....)
To: EXCH54FE
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.
To: EXCH54FE
One more step towards single-payer, the ultimate goal.
5
posted on
10/10/2015 9:25:20 AM PDT
by
upchuck
(Academics think capitalism is corrupt because that's how academia is. h/t Glen Reynolds)
To: EXCH54FE
All part of The Plan to get to single payer.
6
posted on
10/10/2015 9:28:59 AM PDT
by
FourPeas
("Maladjusted and wigging out is no way to go through life, son." -hg)
To: tcrlaf
The curse known as MATH strikes again. Needs to be repeated.
7
posted on
10/10/2015 9:30:37 AM PDT
by
FourPeas
("Maladjusted and wigging out is no way to go through life, son." -hg)
To: EXCH54FE
No. No.
It’s like finding out that Mickey Mouse isn’t real.
8
posted on
10/10/2015 9:41:14 AM PDT
by
blueunicorn6
("A crack shot and a good dancer")
To: EXCH54FE
9
posted on
10/10/2015 9:45:21 AM PDT
by
Bratch
To: Bratch
10
posted on
10/10/2015 9:46:28 AM PDT
by
Bratch
To: EXCH54FE
Twenty-one of 23 co-ops nationwide were losing money as of Dec. 31, the HHS inspector general report found in July.I see they are using the time honored "US Postal Service" business model.
To: EXCH54FE
12
posted on
10/10/2015 9:58:16 AM PDT
by
smokingfrog
( sleep with one eye open (<o> ---)
To: EXCH54FE; All
wasn’t this part of the kentucky exchange which is held up as the gold standard by liberals??
13
posted on
10/10/2015 9:58:18 AM PDT
by
God luvs America
(63.5 million pay no income tax and vote for DemoKrats...)
To: smokingfrog
“Nonprofit” can work just fine...but it still has to have a sustainable model. Obamacare is not that.
To: God luvs America
To: EXCH54FE
"This wealth redistribution is trickier than I thought"
16
posted on
10/10/2015 10:40:05 AM PDT
by
DannyTN
To: EXCH54FE
"This wealth redistribution is trickier than I thought"
17
posted on
10/10/2015 10:40:05 AM PDT
by
DannyTN
To: DannyTN
18
posted on
10/10/2015 10:41:24 AM PDT
by
dfwgator
To: EXCH54FE
all from the boy and his minions not smart enough to understand the business model of a lemonade stand.
19
posted on
10/10/2015 10:44:43 AM PDT
by
Chode
(Stand UP and Be Counted, or line up and be numbered - *DTOM* -w- NO Pity for the LAZY)
To: PrairieLady2
It is not true that the majority of bankruptcies are caused, or were caused by medical expenses. Before Elizabeth Warren became Senator Warren, she was a law professor at Harvard known for her work on the topic of bankruptcy. When Obamacare was being debated in Congress, she testified that the majority of bankruptcies were
caused by medical expenses. That was not true then. It was arguably true that the majority of consumer bankruptcy cases had medical debt among the debts discharged. But causality is something entirely different. Many folks who blow up their credit cards recklessly also owe their physician or a clinic at the time they finally seek relief under 11 U.S.C. But that does not mean that medical debt drove the decision.
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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