“Competition is good for the consumer in terms of cost and quality. For that alone, the co-op notion or concept ought to be applauded,” said Dr. Eli Adashi of Brown University.
One Year After Obamacare’s Implementation, Taxpayer-Funded Co-Ops Struggle to Survive
By Heritage Foundation Melissa Quinn——Bio and Archives--February 9, 2015
After receiving $2.5 billion in taxpayer dollars from the federal government, the vast majority of nonprofit insurance companies created under the Affordable Care Act recorded losses in revenue, an analysis by The Daily Signal found.
Consumer Operated and Oriented Plans, or co-ops, are nonprofit insurance companies created by the Affordable Care Act. Though the concept is not new, 23 of these entities were created to foster competition in areas where few options are available.
Now, CoOportunity, a co-op created to serve Iowa and Nebraska, will be liquidated. Some lawmakers question the viability of the remaining 22 co-ops.
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