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Two More ACA Cooperatives Go Down in Flames

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Two More ACA Cooperatives Go Down in Flames

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Just last week, the Advocates noted the Kentucky Health Cooperative announced that it would close at the end of the year. At the time, the cooperative, which was set up under the Affordable Care Act, was the six to shutter because of financial problems.

cooperativeSince last week, however, two more cooperatives – Connect for Health Colorado and Oregon’s Health CO-OP – have been forced to close, bringing the grand total to eight. Roughly 400,000 people are now without coverage because of the failures. As the Washington Post explained on Friday, “Nearly a third of the innovative health insurance plans created under the Affordable Care Act will be out of business at the end of 2015.

Like other cooperatives, Connect for Health Colorado and Oregon’s Health CO-OP faced significant financial troubles. According to a July 2015 report from the Department of Health and Human Services Office of the Inspector General, Connect for Health Colorado lost $23 million in 2014 and Oregon’s Health CO-OP lost more than $6.7 million.

Cooperatives were supposed to be the big compromise for Democrats who wanted a single-payer program – the so-called “public option” – to compete with private health insurance companies.

“Markets have…been disrupted by a cascade of failures among the ACA co-ops that were intended as a liberal insurance utopia,” the Wall Street Journal noted. “These plans were seeded with billions of dollars in federal start-up loans and were supposed to work like the credit unions or the electric collectives of the Depression era.”

“No profits were allowed, advertising to introduce new products was restricted and industry executives were barred from management. As it turns out, attempting to outlaw expertise and incentives tends not to produce good results,” the paper added.

Indeed, just before the announcement, Oregon’s Health CO-OP CEO Phil Jackson tried to explain an average premium increase of nearly 20 percent. “Nobody knew what it was going to cost to provide insurance benefits on the exchange,”Jackson said. Yeah, it’s such a big surprise that costly health plans with mandated benefits that people may not want or need would attract too few healthy consumers and wind up requiring big premium hikes. Which is exactly what has happened in state after state.

With the next ACA open enrollment period set to begin on November 1, one of the key components of the law is faltering. It’s just a matter of time when the rest of it collapses. The only question is whether it’ll take the health insurance industry with it.

Kentucky ObamaCare Cooperative Will Close

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Kentucky ObamaCare Cooperative Will Close

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Kentucky’s health insurance cooperative will close by the end of the year, leaving approximately 51,000 looking for coverage from other insurers that offer plans on the state’s insurance exchange. The Kentucky Health Cooperative is the latest of its kind to close down due to financial difficulties.

Health Care

Nonprofit insurance cooperatives are an integral part of the Affordable Care Act, or “Obamacare.” But this type of health insurance provider has hit significant snags. According to a recent report from the Department of Health and Human Services Office of the Inspector General, 21 of the 23 cooperatives created under the 2010 health insurance reform law are losing money and 13 aren’t meeting enrollment projections.

The report revealed that 21 cooperatives have lost $382 million combined. The Kentucky Health Cooperative ran the largest deficit, losing more than $50 million. Cooperatives were meant to compete on the exchanges with private health insurance. They were a compromise when leftists in Congress were unable to get the so-called “public option,” or single-payer, included in the Affordable Care Act.

The Kentucky Health Cooperative decided to shutter after finding out that it would receive a smaller than expected payout from the Affordable Care Act’s “risk corridors” program, according to The Hill. This program provides health insurers with payouts to cover some of the losses they incur for plans available on the exchange.

“It is with sadness that we announce this decision,” Kentucky Health Cooperative Interim CEO Glenn Jennings said in a release. “This very difficult choice was made after much deliberation. If there were a way to avoid it and simultaneously do right by the members, providers and all others that we serve, we would do so.”

“In plainest language, things have come up short of where they need to be,” he added.

Senate Majority Leader Mitch McConnell, R-Ky., reacted to the news by noting that the closure of his home state’s cooperative is a sign of deeper problems with the Affordable Care Act.

“Barely a week goes by that we don’t see another harmful consequence of this poorly conceived, badly executed law,” McConnell said on Friday. “Despite repeated Obama administration bailout attempts, this is the latest in a string of broken promises with real consequences for the people of Kentucky who may now be losing the health insurance they had and liked twice within the past three years because of Obamacare’s failures.”

Five cooperatives have closed, including Kentucky’s. Others include New York’s Health Republican Insurance and the joint venture for Iowa and Nebraska, CoOpportunity.

They Said It… With Congressman Dana Rohrabacher, Jonathan Gruber, and More

in Liberator Online by James W. Harris Comments are off

(From the They Said It section in Volume 19, No. 21 of the Liberator Online. Subscribe here!)

Congressman Dana Rohrabacher“The fundamental principles are individual liberty, which Republicans have always talked about; limited government, which Republicans have always talked about; the doctor-patient relationship, which, of course, we have been stressing a lot about lately; and of course, states’ rights. … It is counterproductive to the people of this country to have our limited resources — we’re $500 billion in debt every year — to put in jail someone who is smoking a weed in their back yard, or especially for medical purposes. It is a total waste of resources. … To my fellow Republicans, this is going to help you politically. If I can’t appeal to you on your philosophical nature, come on over for just raw politics, the numbers are going this way now.” — U.S. Congressman Dana Rohrabacher (R-CA), former Reagan press secretary and speech writer, quoted in the Washington Post November 14, 2014.

“If you have a law that makes explicit that healthy people pay in and sick people get money, it wouldn’t have passed. … Lack of transparency is a huge political advantage. And basically, call it the ‘stupidity of the American voter’ or whatever, but basically that was really, really critical to getting the thing to pass.” — Obamacare architect Jonathan Gruber, who was paid nearly half a million dollars to help craft Obamacare, in a 2013 video that surfaced this month.

WHERE IS THE ANTI-WAR LEFT? “Hundreds of airstrikes, over 3,000 soldiers deployed, and a request for $5.6 billion is a war, folks. Had President Mitt Romney just doubled our military presence in the Middle East and launched airstrikes that even the Kurds and the Free Syrian Army have criticized, the reaction would have been entirely different from liberals throughout the country. We once again have over 3,000 American boots on the ground in Iraq (without a peep from the anti-war left)…” — journalist H. A. Goodman, “I’m a Liberal Democrat. I’m Voting for Rand Paul in 2016. Here Is Why,” Huffington Post, Nov. 17, 2014.

YET ANOTHER DUMB WAR: “For most of this century, we’ve been fighting wars to enhance our security, and each time, we find ourselves with more enemies and less security. By now it should be clear that is not a coincidence.”— syndicated columnist Steve Chapman, “The U.S. Goes to War Without a Clue, Again,” November 6, 2014.

Video: Coffeecare —The Affordable Coffee Act

in Healthcare, Liberator Online by James W. Harris Comments are off

You know how you buy a cup of coffee. You just go into the store, ask for what you want, and pay. End of story.

But… What if we had to buy our coffee like the government is now forcing us to buy health insurance? What if, like Obamacare, we had… Coffeecare?

This scathing and very funny animated video by RealityAlwaysWins show us. The result is a lot of laughs and a thorough indictment of the bitter brew that is Obamacare. All in just three and a half short and funny minutes.

Share it online with friends. It will open their eyes and let them smell… the Coffeecare.

Gallup Poll: Nearly 3 in 4 Americans Say “Big Government Is Our Greatest Threat”

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(From the Intellectual Ammunition section in Volume 19, No. 1 of the Liberator Online. Subscribe here!)

For nearly 50 years Gallup has polled the American public on this question: “In your opinion, which of the following will be the biggest threat to the country in the future — big business, big labor, or big government?”

In mid-December Gallup announced this year’s result: Fully 72 percent of Americans now say big government is a greater threat to the U.S. than either big business or big labor.

That’s an all-time record — and by a sizeable margin.

A majority of Americans have always chosen “big government” when asked this question. But the 72% choice of big government as the biggest threat is the largest ever, far surpassing the prior record of 65% in 1999 and 2000.

(For comparison, when the poll was first taken in 1965, only 35% of Americans thought big government was the greatest threat.)

This year just 21% named big business as the greatest threat, and only 5%, a record low, said big labor.

Further, the response is consistent across party lines. Gallup notes: “Each party group currently rates big government as the greatest threat to the country, including a record-high 92% of Republicans and 71% of independents, as well as 56% of Democrats.”

Concludes Gallup: “This suggests that government policies specific to the period, such as the Affordable Care Act — perhaps coupled with recent revelations of government spying tactics by former NSA contractor Edward Snowden — may be factors.

“Americans have consistently viewed big government as a greater threat to the United States than either big business or big labor, but never more than they do now. That may be partly a reaction to an administration that favors the use of government to solve problems. Also, the revelation of widespread government monitoring of U.S. Internet activity may be a factor in raising Americans’ concern about the government. …

“In the future, Americans likely will continue to view big government as the greatest threat of the three, partly because of Republicans’ reluctance to rely on government to solve problems, and because Democrats and independents are also inclined to view big government as a greater threat than big business or big labor.”