Other insurance companies, hospitals and doctors must pass cost on to YOU in premium increases.
Twelve out of 23 non-profit Obamacare cooperatives have failed, and the rest are on life-support. Congress isn’t expecting to ever see repayment. Please see report below.
EXCLUSIVE from FOX NEWS: The dozen failed ObamaCare cooperatives have not repaid any of the $1.2 billion in federal loans they received and still owe more than $1 billion in additional liabilities, according to recent financial statements cited Thursday at a congressional hearing.
[pullquote align=”right” cite=”” link=”” color=”” class=”” size=””]ObamaCare provided $2.4 billion in federal loans to establish 23 non-profit cooperatives. A dozen failed and the administration has required eight of the remaining eleven to adhere to a “corrective action plan” designed to fix business flaws and prevent additional failures. The closed cooperatives account for $1.2 billion in federal loans. The failed cooperatives left hundreds of thousands of customers searching for a new insurance company.[/pullquote]
“We shouldn’t hold our breath on repayment,” Sen. Rob Portman, R-Ohio, chairman of the Senate Permanent Subcommittee on Investigations, said in his opening statement at the hearing.
“In some states, these losses will be absorbed by other insurance companies—which means, by the policyholders of other insurance companies who have to pay increased … premiums,” he said. “In other states, doctors, hospitals and individual patients stand to suffer large out-of-pocket losses due to the co-op failures—as our report details.”
Portman’s statement, first obtained by Fox News, refers to an investigation by the committee’s majority staff. It claims the most recent balance sheets provided to the subcommittee show the failed cooperatives owe more than $700 million to doctors and hospitals for plan year 2015.
The failed cooperatives lost $376 million and exceeded the projected worst-case-scenario losses outlined in their loan applications by more than $260 million in 2014. They lost an additional billion dollars in 2015, according to the report.
“Once the co-ops got going in 2014, things went south in a hurry—both in terms of financial losses and enrollment figures that wildly deviated from the co-ops’ own projections,” Portman said. “Despite getting regular reports that the co-ops were hemorrhaging cash, HHS [the Department of Health and Human Services] took essentially no corrective action for over a year.”
The report cited in Portman’s statement also claims that from 2014–2015, the administration lent an additional $848 million to the failed cooperatives, as they lost more than $1.4 billion.
(Read more via FOX News)
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