S&P says Obamacare state co-ops underwater

S&P says Obamacare state co-ops underwater

Some Democrats and designers of the Affordable Care Act have tried to convince us that the state co-ops are another Obamacare success story, but like many stories, their optimism is more fiction than truth. According to the Washington Post:

“When the new health-care law was being cobbled together, Congress decided to establish a network of nonprofit insurance companies aimed at bringing competition to the marketplace, long dominated by major insurers.

But these co-ops, started as a great hope for lowering insurance costs, are already in danger.

While the debut of the Affordable Care Act this month has been marred by widespread computer problems, the difficulties the co-ops face have been less obvious to consumers. One co-op, however, has closed, another is struggling, and at least nine more have been projected to have financial problems, according to internal government reviews and a federal audit.

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