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First PPACA co-op falters

A startup insurance company loaned $145 million by the government under Obamacare is running out of money and being taken over by state officials in Iowa.

By Anna Edney | Updated on December 29, 2014
House Oversight Committee Chairman, Rep. Darrell Issa, R-Calif. (AP Photo/Molly Riley)
(Bloomberg) — A startup insurance company loaned $145 million by the government under Obamacare is running out of money and being taken over by state officials in Iowa.

The company, CoOportunity Health, which also serves Nebraska, was placed under Iowa Insurance Commissioner Nick Gerhart’s supervision this week and is no longer accepting new enrollees, according to a statement from his office. While Gerhart’s agency will operate the company for the time being, it’s urging policyholders to seek a new insurer.

CoOportunity Health is a co-op, or Consumer Operated and Oriented Plan, one of 23 nonprofit health insurers providing coverage in 26 states. They were created under the Patient Protection and Affordable Care Act to increase competition. The fate of CoOportunity provides new fodder for Obamacare opponents who argue that the law wastes government money.

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