Feds Hide Secret List Of 11 Staggering Obamacare Insurers
A
man looks over the Affordable Care Act (commonly known as Obamacare)
signup page on the HealthCare.gov website in New York in this Oct. 2,
2013 photo illustration. (REUTERS/Mike Segar)
Federal
officials have a secret list of 11 Obamacare health insurance co-ops
they fear are on the verge of failure, but they refuse to disclose them
to the public or to Congress, a Daily Caller News Foundation
investigation has learned.
Just in the last three weeks, five of
the original 24 Obamacare co-ops announced plans to close, bringing the
total of failures to eight barely two years after their launch with $2
billion in start-up capital from the taxpayers under the Affordable Care
Act.
All 24 received 15-year loans in varying amounts to offer
health insurance to poor and low income customers and provide publicly
funded competition to private, for-profit insurers. The eight co-ops to
announce closings served populations in ten states: Iowa, Nebraska,
Kentucky, West Virginia, Louisiana, Nevada, Tennessee, Vermont, New York
and Colorado.
Nearly half a million failing co-op customers will
have to find new coverage in 2016. More than $900 million of the
original $2 billion in loans has been lost.
The
11 unidentified co-ops appear to be still operating but are now on
“enhanced oversight” by the federal Centers for Medicare and Medicaid,
which manages the Obamacare program. The 11 received letters from CMS
demanding that they take urgent actions to avoid closing.
Aaron
Albright, chief CMS spokesman, said 11 co-ops “are either on a
corrective action plan or enhanced oversight. We have not released the
letters or names.” He gave no grounds for withholding the information
from either the public or Congress.
CMS officials have stonewalled
multiple congressional inquiries into the co-op financial problems. The
latest congressional inquiry came
in a September 30 letter to CMS acting administrator Andy Slavitt demanding transparency over the troubled program.
“We
have long been concerned about the financial solvency of CO-OPs,” three
House Ways and Means committee members wrote to Slavitt. “Which plans
have received these warnings or have been placed on corrective plans,”
the congressmen asked. To date, they have received no reply.
Insurance
commissioners in Vermont were the first to refuse to license the
federally approved co-op there in 2013 because they feared those
financial plans were unrealistic. But then the dominoes began to fall
this year, resulting in at least eight co-op failures. And if CMS
officials are to be believed, more failures may be on the way.
Sen.
Charles Grassley , a senior member of the Senate Finance Committee who
has been an outspoken critic of the troubled co-op program, said
transparency should be a top priority for the faltering program.
“Since
the public’s business generally ought to be public, CMS should have a
good reason for not disclosing which co-ops are troubled,” he said.
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