[Old School]

It was only a matter of time, and the sad thing is more are expected.

"An Obamacare-created and taxpayer-funded insurance company in Iowa has been taken over by the state due to a financial crisis."

E"ven since then, the administration issued two last-minute solvency loans, which it kept quiet for weeks. Kentucky Health Cooperative received an extra $65 million emergency solvency loan days before the second open enrollment period launched and the co-ops began to sign up new customers — but CMS did not announce the loans until Dec. 15, along with another last-minute $23 million solvency loan to Wisconsin’s Common Ground Healthcare Cooperative."

http://dailycaller.com/2014/12/24/obamac...the-state/

[Do-double-gg]

I think the problems that Obamacare is going to create are just getting started and things are going to get way worse unfortunately!

[TheRealVille]

It was only a matter of time, and the sad thing is more are expected.

"An Obamacare-created and taxpayer-funded insurance company in Iowa has been taken over by the state due to a financial crisis."

E"ven since then, the administration issued two last-minute solvency loans, which it kept quiet for weeks. Kentucky Health Cooperative received an extra $65 million emergency solvency loan days before the second open enrollment period launched and the co-ops began to sign up new customers — but CMS did not announce the loans until Dec. 15, along with another last-minute $23 million solvency loan to Wisconsin’s Common Ground Healthcare Cooperative."

http://dailycaller.com/2014/12/24/obamac...the-state/

KHC expected 30,00 enrollees, it got almost double, at 57,000. The loan wasn't because it was losing money per se, it was to shore up the non profit cop-op to handle the almost double the people enrolled. The loan is to be paid back in 15 years, with interest. These type of loans are given to all different kinds of cop-ops, all the time. Nice try at a sideways falsehood.

The federal Affordable Care Act created a new category of nonprofit health insurers in the hope it would offer consumers more choices. These companies, including the Kentucky Health Cooperative, started last year with the help of federal loans. Their funding was based in part on how many customers they predicted they would have. The Kentucky Health Cooperative predicted it would have about 30,000 customers. Instead, it has 57,000, according to CEO Janie Miller.

"We almost doubled our enrollment," said Miller, a former Kentucky insurance commissioner. "Therefore we needed additional capital sitting there from which we would, of course, pay claims."

State law requires insurance companies to keep a certain amount of cash on hand to pay claims as a way to protect consumers who make those claims. These federal solvency loans are designed to help these new co-ops meet those cash requirements.

"They are a new startup companies. They do not have parent companies, per se, that could push money down to them," said Sharon Clark, Kentucky's Department of Insurance Commissioner. "There were a lot of unknowns. ... So the federal government put several mechanisms in place to try to address any issues like cash flow or to adjust for the risk."

Miller said the loans are not given automatically. They had to compete against other co-ops across the country to receive one last month.

"I think that the investment of the additional $65 million in the co-op would indicate to me that CMS thinks this is a very successful program," she said.

Since kynect's open enrollment period began Nov. 15, more than 9,200 people have used it to purchase a private health insurance plan. Of those, more than 6,000 qualified for a federal discount on their premiums. Another 75,700 people have renewed the private health insurance plan they purchased last year.

Miller said the goal is for the cooperative to eventually become self-sufficient and operate from the money it makes selling insurance.

"These programs recognize that insurance companies, small insurance companies, being introduced into the market would take a number of years to break even and then be able to achieve sufficient operating results to start paying back the loans," Miller said.

Read more here: http://www.kentucky.com/2014/12/18/36003...rylink=cpy

[TheRealVille]

Obamacare-Created Insurer Goes Under

It isn't going under, it's just getting started, with a government loan to help, just like many other "just getting started" businesses that get government help to startup.

In the same way that the old adage ,"you meet the nicest people on a Honda" went, one can also determine that "you meet the most dishonest people on a republican political forum".

[Old School]

It isn't going under, it's just getting started, with a government loan to help, just like many other "just getting started" businesses that get government help to startup.

In the same way that the old adage ,"you meet the nicest people on a Honda" went, one can also determine that "you meet the most dishonest people on a republican political forum".

Does this sound like a company just getting started?

“It’s a difficult situation,” Gerhart said. Customers’ coverage will continue for now, but Gerhart expects that most customers will switch to other insurers operating on Iowa’s and Nebraska’s Obamacare exchanges by the end of the open enrollment period on Feb. 15. It’s no longer accepting new sign-ups for coverage.
The state of Iowa, in the form of Gerhart himself, is in charge of the company now, according to Dana McNeill, a CoOpportunity vice president.
The Obamacare-created company has been bleeding cash over the past several months. Its net cash and investments fell from $121.5 million on Oct. 31, just a month after receiving a solvency loan from the Obama administration, to $17 million on Dec. 12, the Des Moines Register reports.

I will admit it is very similar to the Solar Companies Barry started with government assistance a few years back.

[TheRealVille]

Does this sound like a company just getting started?

“It’s a difficult situation,” Gerhart said. Customers’ coverage will continue for now, but Gerhart expects that most customers will switch to other insurers operating on Iowa’s and Nebraska’s Obamacare exchanges by the end of the open enrollment period on Feb. 15. It’s no longer accepting new sign-ups for coverage.
The state of Iowa, in the form of Gerhart himself, is in charge of the company now, according to Dana McNeill, a CoOpportunity vice president.
The Obamacare-created company has been bleeding cash over the past several months. Its net cash and investments fell from $121.5 million on Oct. 31, just a month after receiving a solvency loan from the Obama administration, to $17 million on Dec. 12, the Des Moines Register reports.

I will admit it is very similar to the Solar Companies Barry started with government assistance a few years back.

Look at your opening post. You were making it look like Ky's cop-op was going under, with your quotes, not Iowa. The loans are to shore up these companies because more people signed up than expected. Insurance companies have to have a certain amount of money to operate, compared to it's customer base, and these companies got more customers than was expected. Again, you were being very dishonest in your presentation, although doing it in a sideways fashion, as a lot of you republicans do, while trying to slam the President.

[TheRealThing]

Look at your opening post. You were making it look like Ky's cop-op was going under, with your quotes, not Iowa. The loans are to shore up these companies because more people signed up than expected. Insurance companies have to have a certain amount of money to operate, compared to it's customer base, and these companies got more customers than was expected. Again, you were being very dishonest in your presentation, although doing it in a sideways fashion, as a lot of you republicans do, while trying to slam the President.

That's not what he said. ObamaCare according to Barack back in 2008, would not cost the taxpayer "one dime". No, in his Keynesian deluded mind the whole thing was to sort of fund itself. Kinda like magic I guess.

I believe the gist of Old School's post was to expose the fact that ObamaCare as it exists right now, is completely propped up by the taxpayer. The federal government has thrown hundreds of millions of dollars toward just advertising, bloviating and government backed cheerleading. The actual overall expense is staggering, in fact, 5 billion has been spent just on websites which still don't function and are known to be risk adverse for those who want to keep the private information private. As far as how much the actual coverage and associated care has cost is anybody's guess. Kentucky and the other states which have liberal mushrooms for governors have gone all-in for ObamaCare. They believe that the new healthcare system represents an economic boom to those who get set up first.

If it had any hope of success, states like Iowa and Kentucky would not be bleeding chips and begging for more.

[Old School]

Kentucky Health Cooperative received an $65 million emergency solvency loan. Does that sound like they are on a solid foundation?

If these loans were to shore these companies because more people than expected signed up. Then why did they have to raise their premiums in Iowa 19%?


I attached the article so everyone could read for themselves, apparently something you failed to do.

[TheRealVille]

^The 65 million loan was to shore up the added money needed to have for claims, due to the double number of the insured, as plainly stated in the article. Apparently, you were the only one that didn't read it.

[Old School]

^The 65 million loan was to shore up the added money needed to have for claims, due to the double number of the insured, as plainly stated in the article. Apparently, you were the only one that didn't read it.

If the number of insured doubled the original estimates, shouldn't the collection of additional premiums have covered or at least partially covered the added expense?

If it were true about that the number of insured being doubled, then why did the administration keep this information quite? Isn't this good news for Obama? We both know if this administration had any good news it would have been on every media outlet they own. Why did they wait nearly a month to announce this to the press?

Why was a 15% rate increase approve for 2015 in Kentucky if this program was working as well as you claim?

[TheRealThing]

If the number of insured doubled the original estimates, shouldn't the collection of additional premiums have covered or at least partially covered the added expense?
If it were true about that the number of insured being doubled, then why did the administration keep this information quite? Isn't this good news for Obama? We both know if this administration had any good news it would have been on every media outlet they own. Why did they wait nearly a month to announce this to the press?

Why was a 15% rate increase approve for 2015 in Kentucky if this program was working as well as you claim?

Exactly right. It will never work the way Obama promised. In fact it will cost the taxpayers a veritable fortune every year until it is repealed. Remember, Obama said the ACA would not cost the taxpayer "one dime." When in reality, the only predictions or forecasts regarding ObamaCare which have come to pass are those made by Republicans, who tried in vain to get the electorate to understand that outside of massive taxation, it cannot work.

But, in all of this, the one irony that keeps escaping notice, is the role of the evil health insurance companies in the inner workings of the ACA. Supposedly, if you will recall, when they were trying to sell ObamaCare, they were blaming insurance company execs and saying it was they who were responsible for driving up costs and pocketing the resulting fortunes for themselves. After passage of the ACA, Dems and the liberal media have conveniently left out the fact that those very same insurance companies had to enlisted by the administration in order to get the thing off the ground in the first place. It's the very same players doing the very same thing. Other than the fact that the poor get their premiums paid for by others, the only difference is the individual mandate. Now people have to have health insurance under federal law. I mean, what health insurance company is not going to be all-in on a deal like that? All the crying and dying won't start until the employer mandate is initialized.