We need to repeal and replace Obamacare — not to strip the president of his administration’s signature achievement, but to save the public from his greatest failure.
UnitedHealth (America’s largest insurer) has expressed regret at entering the Obamacare exchanges, and plans to pull out completely this year. Their losses due to Obamacare top $1 billion.
That’s just one private insurer participating in Obamacare’s exchanges — and it’s doing well compared to the public co-ops the law has spawned.
Via The Daily Caller:
Eight of the 11 remaining Obamacare health insurance co-ops are in serious financial trouble and could collapse by the end of the year, Mandy Cohen, a top federal health official told Congress Thursday in testimony before a House oversight panel.
Twenty three of the non-profit co-ops were established under Obamacare in 2012 to compete with commercial for-profit insurance companies. But so far half — or 12 — have closed their doors after only two years of operation. A thirteenth co-op in Vermont was never licensed to operate.
Cohen stubbornly refused to disclose which of the remaining 11 are struggling, but conceded that eight now face either federal “enhanced oversight” or are operating under a federal “corrective action plan.”
Cohen refused to guarantee any of the three co-ops not presently operating under a corrective plan would survive the year. “Too early to tell in the year,” Cohen said. “As new information comes up, if we need to, we will put more folks up on corrective action plans.”
Eleven Obamacare exchanges closed last year from October-November, and it looks like the remaining exchanges are headed to the same fate. When the administration couldn’t do as much as release a functioning website for the healthcare law on time, it certainly foreshadowed trouble ahead.
[Note: This post was authored by The Analytical Economist]