On August 8, I reported that 367,000 Texans were losing their healthcare insurance due to Obamacare. Several major insurance companies were losing millions of dollars on a number of Obamacare plans even though they had raised premiums from the year before.
Now I read that over 100,000 New Yorkers will be losing their healthcare plans and it’s going to cost taxpayers a small fortune.
When Obamacare went into effect, a number of insurance co-ops tried to cash in on the healthcare business. Health Republic of New York was one of 23 such co-ops that talked Congress into giving them a $2.5 billion loan to get their programs up and running. Budget experts warned Congress that most of the co-ops would fail and be unable to repay their loans, but hey, it’s not like it was money of their pockets, so Congress went ahead and loaned them our tax dollars.
It’s now time for the budget experts to tell Congress that they told them so because Health Republic of New York is cancelling all of their healthcare plans as of December 1. With the announcement by Health Republic, that makes 21 of the 23 co-ops that received the congressional loan have either closed their doors or have reported that they are losing tons of money.
So whose fault is this really?
In 2010, Barack Obama and his fellow Democrats who controlled both houses of Congress insisted that the Affordable Care Act establish non-profit insurance co-operatives. They said these co-ops would compete with the major for-profit insurance companies and help keep rates lower.
Additionally, the Obama administration insisted that the folks running the insurance co-ops have no prior record or ties to the insurance industry. It seems that they were setting the co-ops for failure before they ever began. Who in their right mind would put someone with zero experience to head any kind of industry? Oh yeah, that’s what the American people did when they voted Obama into office in 2008.
The number of people losing their policies at the end of year keeps growing because of Obamacare requirements placed on insurance companies. Every failure and loss of revenue for these companies just means that more taxpayer dollars will be lost and spent on a failing system. In the case of the co-ops that Obamacare created, it looks like the taxpayers are on the hook for most of the $2.5 billion Congress lent them against all good advice.