Obamacare’s Government-Backed Nonprofit Health Plans Are a Disaster—and Could Cost Taxpayers Billions | WHAT REALLY HAPPENED

Obamacare’s Government-Backed Nonprofit Health Plans Are a Disaster—and Could Cost Taxpayers Billions

The federal government shelled out $2.4 billion in loans to a series of non-profit health plans under Obamacare, but now they’re struggling to stay alive.

The plans, dubbed CO-OPs (Consumer Operated and Oriented Plans) were intended to increase competition in the insurance market and serve as a check on private insurers by providing an alternative that wasn’t focused on profit. They were a compromise measure intended to satisfy liberals who wanted the law to set up a fully government-run health insurance option.

As it turns out, Obamacare’s CO-OPs weren’t focused on profit—or, it seems, financial viability of any kind.

The CO-OPs have struggled to meet enrollment targets, with 13 of the 23 non-profit plans showing “considerably lower” enrollment than projected, according to a report by the Health and Human Services Inspector General. Finances were shaky all around with 21 of 23 plans incurring losses through the end of 2014, the report says.

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