Health Republic, the Obamacare co-op whose finances were so dismal that regulators from the state of New York had to shut them down, was doling out massive salaries to their top executives according to a new report.
According to tax forms obtained by the Daily Caller, four of the top executives at Health Republic alone earned over $1.15 million.
Via the Daily Caller:
Thirty-four top executives at 10 failed Obamacare co-ops were paid a whopping $8,211,384 in 2014, according to 990 tax forms obtained by The Daily Caller News Foundation.
New York had the highest total, having paid four of its employees an astounding total of $1,156,317 , with Health Republic Insurance of New York CEO Debra Friedman taking in $427,632 and COO Nicholas Liguori making $316,411. Nevada Health Cooperative’s CEO had the highest salary of the year, receiving $428,001 in compensation for 2014.
Even more damning on these tax documents? The salaries of employees went from $1.8 million the previous year, to $11.6 million the following year. All the while Health Republic reported a revenue of -$77.5 million, a tremendous loss.
The shutdown of the largest Obamacare co-op in the state led to over 200,000 customers scrambling for new health insurance to meet a fast-approaching deadline, while hospital groups were left without over $150 million in unpaid costs.
Rep. Chris Gibson (R) – a likely candidate for Governor in 2018 – called for the state comptroller to investigate what happened to Health Republic, leveling criticism at Governor Cuomo for a lack of oversight into the failed co-op.
Gibson told Time Warner Cable News that the co-op’s failure could be the start of a trend that leads to the collapse of the insurance market.
“This failure represents about 20 percent of the individuals in New York state that went to the market for insurance,” Gibson said. “If this trend continues it’s going to be destabilizing for market.”
“We need to know what happened.”
Cross-posted at the Mental Recession.