Failing Health Insurance Cooperatives and the Future of Obamacare


November 13, 2015 by JImbo

A very good summary of the ACA (“Obamacare”) and its effects.


Utah’s nonprofit health insurance cooperative, Arches Health Plan, recently announced it is shutting down.  This is the 10th health insurance cooperative (10 out of 23) to close their doors, citing lower than expected enrollment as the culprit. Billions in federal loans were made to these health insurance cooperatives for the purpose of providing a non-profit, credit union-like alternative to profit centered health insurance companies, under the theory that by removing the profit motive, health insurance cooperatives would be able to pass on their savings to policyholders. Unfortunately, those funds loaned to the now  shuttered co-ops are gone forever. (These failed co-ops should not be confused with the very successful health care sharing ministries (HCSM’s)). These closures were highly predictable. When the Affordable Care Act (ACA) was signed into law on March 23, 2010, it was a political victory but an economic disaster. Now that we are entering Obamacare’s third year, the full weight of what happens when policymakers…

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One thought on “Failing Health Insurance Cooperatives and the Future of Obamacare

  1. Anonymous says:

    Once all the health insurers are bankrupt because of Obamacare mandates, the govt. will get its single payer system.


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