The shuttering of an Obamacare co-op has become an almost monthly ritual at this point. The latest one to fold is in Ohio where claims were coming in at the rate of $3 million per week.
BizJournals has the story:
Ohio shutting down state’s Obamacare nonprofit co-op InHealth – claims paced $3M per week
Ohio is the latest state to lose its nonprofit co-op health insurer created under an Affordable Care Act after a Franklin County judge on Thursday appointed the Ohio Department of Insurance as receiver of InHealth Mutual to take control and liquidate the company.
Policies are still in effect as of now for its 21,800 members, mostly with individual coverage, but the state said they likely have 60 days to choose another plan on the federal Health Insurance Marketplace or risk losing federal subsidies.
The company’s Westerville office is being shuttered and the Insurance Department will administer policies until members switch coverage. The Ohio Life and Health Insurance Guaranty Association covers claims of up to $500,000 when an insurer is in liquidation.
Adjusted projections show InHealth Mutual would end the year with negative $20 million in assets if it were to continue to operate, according to the agency’s complaint in Franklin County Common Pleas Court.
Medical claims were coming in this year at a pace of $3 million a week, said an InHealth board resolution consenting to liquidation that was attached to the state complaint. Actuaries estimated it would have had to increase premiums by 60 percent in 2017 to catch up.
The insurer had set aside $32 million to cushion this year, but claims outstripped premiums by $28 million in the first quarter alone, according to its financial report filed with the agency. The state complaint said the adjusted projection of full-year losses jumped to $54 million.
If Obama and the Democrats didn’t know Obamacare would implode, they were incompetent. If they designed it to fail and pave the way for single-payer, they’re evil.
Either way, it’s we the American people who have lost.