Obama Administration Paves Way for States to Bail Out Remaining Obamacare Co-Ops

The Obama administration is changing its rules for the remaining 11 co-ops started under Obamacare to now allow them to more easily attract outside investors, paving the way for states and large hospital systems to potentially inject cash into the struggling nonprofit insurers. The Centers for Medicare and Medicaid Services issued an interim final rule last week allowing the remaining consumer operated and oriented plans, or co-ops, to solicit financing from private investors and allow state government agencies and investors to place lower-level officials on the co-ops’ boards of directors. Allowing states to exercise some control of the co-ops’ governance provides them with an incentive to give the nonprofit insurers a much-needed infusion of cash, Ed Haislmaier, a senior fellow in health policy at The Heritage Foundation, told The Daily Signal. Read more...