[Ed. – Another one bites the dust.]
The lone health insurance cooperative to make money last year on the Affordable Care Act’s public insurance exchanges is now losing millions and cutting off individual enrollment for 2016.
Maine’s Community Health Options lost more than $17 million in the first nine months of this year, after making $10.9 million in the same period last year. A spokesman said higher-than-expected medical costs have hurt the cooperative.
The announcement casts further doubt on the future of insurance cooperatives, small nonprofit insurers that were created during the ACA’s creation to inject competition in insurance markets. These co-ops immediately struggled to build their businesses. A dozen of the 23 created have already folded.
An Associated Press review of financial statements from 10 of the 11 surviving co-ops shows that they lost, on average, more than $21 million in the first nine months of the year.