Originally posted November 10, 2015.
Obamacare’s health co-ops—government-sponsored nonprofits that Americans were told would increase competition—are causing the greatest insurance disruption in decades. As the 10 November WSJ notes:
The majority of ObamaCare’s insurance co-ops—12 of 23—have now folded, and their $1.24 billion in federal loans has all but vaporized. More will fail, nearly a million Americans may lose coverage, and now the contagion from their failures is spreading.
The co-ops are also exposing the larger ObamaCare problem. Contrary to popular belief, the exchanges aren’t profitable for insurers.
You don’t have to be a bankruptcy specialist on par with Donald Trump to understand that loading up on clients who are consuming health care but aren’t paying close to full freight is unsustainable.
Kevin D. Williamson wrote recently in NRO that Obamacare is an economic shambles, a political mess that has introduced nothing to the American health care system except chaos. Read more from Mr. Williamson here.