Two weeks ago we reported that in what at the time was still a rather isolated incident, Colorado's largest nonprofit health insurer (aka co-op), Colorado HealthOP is abruptly shutting down, forcing 80,000 Coloradans to find a new insurer for 2016.
At the time, we said that the health insurer had been decertified by
the Division of Insurance as an eligible insurance company because the
cooperative relied on federal support, and federal authorities announced
last month they wouldn't be able to pay most of what they owed in a program designed to help health insurance co-ops get established.
In other words, one of the 24 co-ops funded with Federal dollars and
created to give more policyholders control over their insurers -
especially those who wished to stay away from various corporate
offerings, had failed simply because the government was unable to
subsidize it: the same government that spends $35 billion in global economic "aid" but can't support its most important welfare program.
Fast forward to today, when we learn that another co-op, this time
New York's Health Republic Insurance - the largest of the nonprofit
cooperatives created under the Affordable Care Act - is not only
shuttering, but was engaging in fraud.
The fate of Health Republic Insurance was first revealed a month ago when the WSJ reported it
would shut down after suffering massive losses "in the latest sign of
the financial pressures facing many insurers that participated in the
law’s new marketplaces."