Morning Briefing
Summaries of health policy coverage from major news organizations
Failure Of Health Law Co-Ops Draws Congressional Scrutiny, Shakes Up Some State Insurance Markets
Several Republicans Thursday heaped blame on the Obama administration for the failure of more than half of the cooperatives set up under the health law to infuse competition into the insurance market. The collapse of 12 out of 23 operating co-ops is providing a fresh opportunity for the GOP to criticize the Affordable Care Act and make the health law a talking point in the presidential election. The criticism was aired at a hearing by a House Energy and Commerce subcommittee to examine the failing startups, which received more than $1 billion in federal loans that may not be paid back. (Armour, 11/5)
The nonprofit, member-run health insurance plans created by the Affordable Care Act are in a world of trouble. Twelve of the nation’s 23 Consumer Operated and Oriented Plans, known as co-ops, won’t provide coverage in 2016 after collapsing under the weight of low enrollment, financial problems and a host of technical and operational issues. (Pugh, 11/5)
Executives with Arizona’s health insurance co-op are attempting to convince the Arizona Department of Insurance’s director to reverse an order that effectively put the non-profit out of business. (Alltucker, 11/5)
After days of speculation, a Michigan insurer — a one-of-a-kind entity in Michigan created under federal health reform — is pulling its business from the state's online marketplace. East Lansing-based Consumers Mutual will "enter into a run-off of its business," according to a statement from the Michigan Department of Insurance and Financial Services. The co-op established under the 2010 Affordable Care Act is far from alone in its decision. About a dozen altogether have closed recently, according to national news reports. (Erb, 11/5)
Meanwhile, KHN offers this report on the SHOP program -
Kaiser Health News staff writer Phil Galewitz reports: "Kentucky has run one of the most successful Obamacare individual health insurance exchanges, attracting enough people into private health plans and Medicaid to cut the state’s uninsured rate by half in two years. But Kentucky’s online health insurance marketplace for small employers also created by the Affordable Care Act has mostly been a dud. Just 92 employers have signed up and a total of 901 people, both workers and their dependents, have received coverage through the specialized exchange." (Galewitz, 11/5)
