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Publius / Dec. 15, 2015

Surviving O’Care Co-Ops Losing Money

ObamaCare will need to be reformed by the next administration.

The formerly profitable ObamaCare co-ops are going the way of the defunct ones — who could have seen that coming? The system that was supposed to provide a measure of competition under ObamaCare is anything but profitable. According to an Associated Press analysis, only one ObamaCare co-op, Maine, was profitable last year. From January to September 2014, 10 of the 11 co-ops have lost an average $21 million. Obama administration officials will no doubt tell the American people to have patience. Despite the die-out of the co-ops, Obama’s signature legislation will revive any month now. Or, even better, as Obama put it recently, “There is no doubt that the Affordable Care Act is working.” Deep Banerjee, an analyst at Standard & Poor, told the AP, “It is probably impossible for a startup in the health insurance space to make any significant money in the first couple years.” Startup is harrowing under the most favorable of circumstances. It’s well nigh impossible with government regulation creating the playing field. Thanks to shoddy planning, ObamaCare will need to be reformed by the next administration. Hopefully, the fix gives the health care industry a way to operate through conservative principles.

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