Monday, January 25, 2016

CO-OP Lifeline?

We've written extensively about CO-OPs (most recently here); I've actually been a fan of the model all along. The major problem is that in practice, that model doesn't appear to be self-sustaining, as more than half of them are already kaput, and most of the rest are in major financial straits.

But there may still be hope, albeit in a totally ironic way:

"The Obama administration’s top health insurance official told Congress [that] he wants to “loosen up capital rules” to allow private investors to become part owners of the dozen surviving Obamacare co-ops."

So, private enterprise swooping in to save the government's day - who could have seen that coming?

Of course, privatizing them means that they cease to be, you know, co-ops and become what we in the industry call "insurance companies." Not that there's anything wrong with that.

What it means in the big picture is that we've burned through hundreds of millions of dollars to prove that government-sponsored health insurance companies don't actually work in the real world.

Which may be a valuable lesson in and of itself, no?
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