What The Demise Of Insurance Co-Ops Says About The ACA

Law360, New York (January 22, 2016, 11:21 AM EST) -- The second half of the calendar year 2015 proved to be a financial challenge for consumer operated and oriented plans (co-ops) established under the Patient Protection and Affordable Care Act (ACA). Initially envisioned as consumer-friendly alternatives to for-profit insurers and a means to enhance competition, consumer choice and the scope of coverage, co-ops have largely been unsuccessful. The impact of the demise of these co-ops was experienced by the entire health insurance marketplace, i.e., consumers and their health care providers as well as by other health insurers participating on the federally-facilitated marketplace and state-hosted exchanges. The market impact caused by the financially troubled co-ops stems from failed federal commitments underlying the president's national health care reform....

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