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IPFS News Link • Obamacare

Taxpayer funded health insurance co-ops are going bankrupt under Obamacare

• http://www.naturalnews.com

(NaturalNews) The bad news concerning Obamacare is growing even worse. Last week, Blue Cross Blue Shield submitted a request for rate hikes of 60 percent for its policyholders in Texas. Then, a couple of days later, the news broke that Ohio's InHealth Mutual co-op is going bust, making it the 13th of 23 non-profit co-ops set up under the Affordable Care Act (ACA) to declare bankruptcy.

From FreeBeacon.com:

"The Ohio Department of Insurance asked to liquidate the company, saying that the company was in a 'hazardous financial condition.' The co-op served nearly 22,000 consumers who now have 60 days to find another policy offered by another company on the federal exchange.

"The company recorded an underwriting loss of $80 million in 2015 despite the $129 million in taxpayer-backed loans granted to the co-op by the federal government."


Reports say that $3 million in claims per week were being filed with the insurer, creating a situation in which a 60 percent rate hike in 2017 would have been necessary to cover the outlays.

Ohio Director of Insurance Lt. Gov. Mary Taylor said:

"Our examination of the company's financials made it clear that the company's losses would prevent it from paying future claims should its operations continue. Under Ohio law, we acted with certainty to protect the consumers."
 

The collapse of Obamacare

Many experts now believe that the remaining 10 ACA co-ops will also fail, contributing what pundits are already calling the "collapse of Obamacare." This means that taxpayers will have to cover the expenses, since it's unlikely that any significant portion of the $1.24 billion allocated to establish the co-ops will ever be paid back.

As Sen. Rob Portman (R., Ohio) recently testified in a Senate Permanent Subcommittee on Investigations hearing:

"The Subcommittee obtained the failed co-op's most recent financial statements, and those statements show that none of the failed co-ops have repaid a single dollar, principal or interest, of the $1.2 billion in federal loans they received.

 

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