Monday, October 19, 2015

Sign-Ups While Co-Op System Crumbles

While there appears to be plenty of blame to go around, some critics complain that CMS has gone from nurturing the experimental co-ops to taking a hard line on the finances. As Martin Hickey, chief executive of New Mexico’s co-op, described the situation to The Post, “It’s kind of like the ACA is eating its young.”
At the same time, officials of the financially strapped co-ops have complained about receiving low payments from an ACA program called “risk corridors,” which was designed to protect participating insurers against heavy losses in cases where their risk pool is dominated by older and sicker patients requiring costly medical treatment. The Obama administration announced on October 1 that the ACA had collected only enough revenues to provide 12.6 percent of the $2.87 billion that the insurers were seeking.
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