Posted on 11/17/2015 2:18:10 PM PST by Brad from Tennessee
SYRACUSE, N.Y. – Health Republic of New York made a big splash when it debuted in 2014 with rock-bottom health insurance prices that undercut its competitors across the state.
Its premium rates were 30 percent below average in Onondaga County. The new company, backed with $265 million in federal loans, quickly captured the biggest share of new business on the state's health insurance exchange created by the federal Affordable Care Act, also known as Obamacare.
Now Health Republic is going broke because of those low prices, forcing its 200,000 members – including 4,060 in Central New York – to get their health coverage from other insurers, experts say. State and federal regulators recently ordered the insurer to stop writing new policies and shut down its business because it's on the brink of insolvency. And it's not clear if the federal loans will ever be repaid.
The federal government provided $2 billion in loans to create 23 co-ops, Health Republic being the largest. Many Democrats in Congress supported the idea. But Republicans questioned the wisdom of spending federal money to start new health plans to compete against well-established health insurers and predicted taxpayers would lose a bundle on the co-op program.
As year two of Obamacare comes to a close, Health Republic and eight other co-ops have failed, and experts say more co-op failures may be in the offing. The nine co-ops insure about 500,000 people in nine states, less than 5 percent of Americans enrolled in private Obamacare plans. . .
(Excerpt) Read more at syracuse.com ...
It will be so so interesting to see which execs get what at the end of the day...corruption from the start.
Is it really that much of a mystery? Adding freeloaders to the system without adding young, income-earning healthy payors = bankruptcy.
It’s what happens when you spend more money than you take in. Difficult as that concept is for liberals to understand.
I want Obama to fail.
I want everything he has ever proposed, or implemented to fail.
Then maybe, never again will we elect an outright socialist as President.
NY is in a long line of Grubers.
[It will be so so interesting to see which execs get what at the end of the day...corruption from the start.]
These ObamaCare co-ops were billed as vehicles to increase competition and lower premium rates. But from their inception they were designed to fail as Democrat cronies skimmed millions from them. It’s the same “bust-out” scam as Solyndra and other federally funded “green” tech companies. I’m hoping the FBI does an audit.
So, they basically stole more than a quarter of a billion dollars from the taxpeasants.
But... but... but... the taxpayers in other states were supposed to bail them out.
They're probably also struggling with the concept that the people they were planning on taking it in from could actually choose not to.
So these are state schemes to suck money from the taxpayers at the federal level, into state coffers that are already bankrupt.
That’s the ticket.
Punish the states that are in the black.
Bump
AND, I want him in prison for the rest of his life.
What's interesting is that this was a low price provider, meaning if youngsters were going to flock to a plan, it would be this one. And yet it's clear that they did not migrate to this plan at a ratio sufficient to cover the cost of older customers.
"Taxpeasants!!! LOL.
Never heard that before; but it's a winner. And sadly, it's how the totalitarian elitists in DC view us.
The Liberal Cronies understand it. It simply doesn't apply to them.
If they wish to keep a "graft and corruption" company going, they can just throw more taxpayer funds at it. If they have skimmed enough to satisfy themselves, they can just shut it down; no harm, no foul to them.
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