Â鶹ŮÓÅ

Democrats fed up with the health insurance industry used President Barack Obama's overhaul to create nonprofit co-ops that would compete against entrenched corporations. Taxpayers put up $2.4 billion in loans to get the co-ops going. But a government audit out Thursday finds that co-ops are awash in red ink and many have fallen short of sign-up goals. (7/30)

Lawyers will argue over the constitutionality of Arizona's hospital "bed tax" Thursday in a case that could determine whether 350,000 residents remain covered under the state's Medicaid expansion. The case hinges on whether the assessment is a tax that should have been passed by a 2/3 vote in the state Legislature or a fee that can be passed by a majority vote. (Christie, 7/29)