Obamacare's Latest Casualty: Largest Health Insurer On Colorado Exchange Abruptly Collapses

Tyler Durden's picture

This wasn't supposed to happen.

With the mainstream media, at least the majority that is left of center, flooded with story after story touting Obamacare's success, the news coming this morning from Denver that Colorado's largest nonprofit health insurer and participant in that state's insurance exchange Colorado HealthOP is abruptly shutting down, forcing 80,000 Coloradans to find a new insurer for 2016, was a slap in the face for the Obama administration's crowning achievement.

According to AP, the health insurer announced Friday that the state Division of Insurance has de-certified it as an eligible insurance company. That's because the cooperative relied on federal support, and federal authorities announced last month they wouldn't be able to pay most of what they owed in a program designed to help health insurance co-ops get established.

Wait, wasn't the whole point behind Obamacare to subsidize health insurance for everyone, and especially the poor? Or was the whole point of the "Affordable" Care Act merely to herd as many Americans into the clutches of the few for-profits, after the non-profit cooperatives finally read the fine print and realized they have no chance of being profitable under the new regime?

The plot thickens: in a statement announcing its closure Friday, Colorado HealthOP said it was "well on its way" to repaying some $72.3 million it has borrowed from the federal fund. The co-op reported a net loss of $23 million last year. In other words, the company burned through some $23 million in taxpayer funds and it didn't even get a lousy shirt to show for it.

Ironically, on the company's website, we read the following about the Co-Op's business model:

if our revenues exceed our costs, the surplus will be reinvested to directly benefit members—through lower premiums, expanded benefits, or quality improvements.

Well, no risk of that ever happening now. What the insurer failed to point out is that if costs exceed its revenues, it will be promptly liquidated and massive corporations will be the sole beneficiaries.

Naturally, the CEO was furious: Colorado HealthOP CEO Julia Hutchins called the de-certification "irresponsible and premature."

She is not alone - as it turns out HealthOP was just the fifth casualty of a program which with every passing months is being exposed as nothing but a tax-backed piggy bank for the mega insurance corporations. "The Colorado announcement makes the co-op at least the fifth in the nation to collapse. Similar nonprofit insurers have already failed in Louisiana, Iowa/Nebraska, Nevada and New York. A health insurance cooperative in Tennessee announced this week that it would stop offering new policies.

Expect even more failures ahead of open enrollment for 2016 starts on November 1. The Colorado Division of Insurance must first certify insurers before they're allowed to sell plans, so the de-certification essentially puts Colorado HealthOP out of business.

Back to the HealthOP CEO who added that "the Division has let local and national politics hurt Coloradans' access to low-cost healthcare options and assessed Colorado taxpayers with significant avoidable costs," Hutchins said in the statement.

Actually they became unavoidable the moment the deeply compromised and ideologically partisan Supreme Court imposed the Obamacare tax on Americans, with few if any realizing the monetary implications of the new insurance regime.

While it won't provide much comfort to Colorado HealthOp, which is now winding down, its board of directors has requesting that the state allow a board-appointed independent consumer protection ombudsman to assist through the shut-down.

In other words, even more millions in taxpayer funds will now be spent to liquidate the health insurer.

And while the lame duck president hardly cared as his legacy achievement will soon be some other president's problem, Republicans quickly took to gloating and pointed to the co-op's closure as "a sad but predictable outcome."

"Taxpayers are on the hook for millions of dollars in loans given out to the CO-OP, money that will likely never be repaid," U.S. Sen. Cory Gardner said in a statement after the announcement. "The years since Obamacare's passage have been marked by crisis after crisis in healthcare, and it's far past time for a new plan."

But wait, there's more. Now that the numbers are being crunched, and hyperbole and propaganda are finally making way for math, someone figured out that Colorado HealthOP's closure could be bad news for everyone shopping on Colorado's health insurance exchange.

A Republican state lawmaker who serves on an oversight committee that has reviewed Colorado HealthOP's finances, Rep. Lang Sias of Arvada, said "rates for everyone are expected to go up next year. Colorado HealthOP accounted for nearly 40 percent of the exchange's total customers."

"They're all going to be paying more, on average, I would expect," Sias said.

And as more Americans get letters in the mail such as the one below kindly informing them their health insurance premiums are rising by 60% crushing any desire to splurge modest "gas savings" on discretionary purchases...

... expect complaints about soaring health insurance prices, to hit - first in Colorado and then everywhere else.

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webdesignvalleys's picture

I just wonder if women are in the list of obamacares? This will be a great solution for sure.

 

Nancy @ boost your bust program

aliki's picture

sooooo, its all going according to plan

remain calm's picture

Wait, can I still get my legalized Marijuana prescription filled first? I need it to deal with all this change.

pods's picture

Wow, the rate this is going it is all going to collapse and the only one left to pay will be the government of the USA.

Purely accidental.

pods

Tom Servo's picture

At least weed is legal...

 

daveO's picture

Luckily, it cures EVERYTHING!

formadesika3's picture

Sure, some folks are gonna get bounced (temporarily) but other folks are gonna get medical coverage (permanently).

knukles's picture

'Nuffin' he does was "supposed" to happen except that "gonna change your life" shit.

NoDebt's picture

I guess the only way out of this is single-payer government healthcare.  Hey, wait a minute....

formadesika3's picture

See, in spirit, this is just like Cloward-Piven. Those guys were geniuses!!!

Relentless101's picture

Fucking FED. How could they let a large health insurer fail on their watch? They obviously need more power and more spending. LOL.

marathonman's picture

The large for profit insurers haven't failed.  Just the non-profit health co-ops.  The health insurance cartel is killing off the competition just like the banking cartel is killing off the non-private central banks around the world.

TongueStun's picture

This wasn't supposed to happen.

 

 

Ummmmm, sure it was, how could we get Single Payer IF Obamacare actually worked?

Al Gophilia's picture

If people looked after their health, this wouldn't have happened. There are too many sick people, who should be held responsible for the drain of resources and be forced to pay a higher premium to cover the losses. The healthy, not having incurred any health care costs, can afford be taxed a one off premium as a contribution to ensure a health system we can all be proud of.

If we could just place a little more faith in the ability of our hard working officials and be selective in who we treat (giving priority to those who care about their personal health), we should see a turn around in the balance sheets. We must use a persuasive stick on those who are a drain on the system, adopting a system that provides a descending level of care to the abusers of the system.

This would ensure the availability and the sustainability of national coverage.

Tonald J Drump's picture

if you like your health plan, you can ..... ahh, forget it, you know the rest.  Oh, and by the way, hey Barry, go suck a big bag of dicks you commie fuckwad.

Squid-puppets a-go-go's picture

how is it possible for these unremitting gougers of the public to collapse? oh thats right, other health industry gougers were gouging the gouger, who obviously didnt gouge enough to replenish the gouging from other gougers

Richard Chesler's picture

I prefer to suck jew bankster cock. - BHO

Stay thristy my friends.

 

 

jeff montanye's picture

every other advanced nation has a better healthcare system for the bottom 99% at about one half the u.s. cost.  that much is true.

you can argue endlessly about the rest, obama's favorite type of cock to suck, whether he's a communist (if so he is a very bad one as only the richest capitalists have benefitted on his watch), etc. 

zhandax's picture

I hate to say it (well, maybe not), but at this point we could lower costs and improve healthcare by outsourcing it to Cuba.

Save_America1st's picture

 

Single-fucking-payer scam of all time is what's coming down the line, bitchez....those of you kinda old right now?  THEY DON'T CARE....GO AHEAD AND FUCKING DIE.  DON'T WORRY...THEY WILL EITHER INDOCTRINATE YOUR YOUNG'INS OR KILL THOSE WHO WON'T COMPLY!!!  After the next 15 years or so, anyone who is still left who hates tyranny and fascism will be almost dead from old age or they will just Mao/Lenin/Hitler/Clinton your ass with a fucking bullet in the head.  After that....there will just be sheeptards vaccinated with so much fucking poison it won't matter to these scumbags if they comply or die from the severe mental retardation effects. 

If any of you have seen Idiocracy or film of the Nazi death camps then you know what the future is for this world (somewhere in between that shit) unless we all DON'T ALLOW IT TO HAPPEN.  I'll leave it up to you all as to how we could accomplish that.  But I think it would be reeeeeaaal fun doing it.  :-)

OBAMMY'S SINGLE-PAYER, GOV-SCUM, TREASONOUS, SOCIALIST, MARXIST TAKEOVER OF THE HEALTHCARE SYSTEM IN ORDER TO DESTROY ALL FREEDOM WHAT-SO-EVER IN AMERICA!!!

That was the plan from the beginning, but it really wasn't this fuck-tard's plan...it has been the treasonous plan of the Marxist, regressive, scum of the Earth who have been scheming this shit for over a hundred fucking years against not just America, but against the entire human race!

AMPALANCE's picture

Just suck down your DU and Fukushima particles, wash them down with leaching plastic bottled water (At least 8 a day), or fluoridated city water. Brush your teeth with fluoridated toothpaste after eating your fluoridated food. Have a nice big plate of pesticide/Herbicide drenched natural gas or manufacturing byproduct fertilized GMO vegetables, and remember to get your course of vaccines. That will surely drive down insurance cost. People could be so healthy it they would just follow these simple steps.

Al Gophilia's picture

I know, right! It's all just so easy. Our health officials need your support through trust. Ask not what you can do for yourself, ask what you can give to your country. Free National Health for everyone.

RichardParker's picture

If we could just place a little more faith in the ability of our hard working officials and be selective in who we treat (giving priority to those who care about their personal health...

No need for that, they will just have death panels instead. 

I have a better idea, how about MANDATORY drug testing for "our hard working officials", especially CONgress.

TeamDepends's picture

Cool, so going to the hospital will be like going to the DMV! Take a number and bask in the radiance of socialist efficiency.

nmewn's picture

Well, at least we all have that extra $2,500 a year Obama saved us on our health insurance!...lol.

(Sigh)..."the stupidity of the American voter."

Normalcy Bias's picture

The real "stupidity of the American voter" may be that so many Americans actually believe that their votes are tallied fairly & accurately.

Al Gophilia's picture

What are you complaining about? At least you'll have a roof over your head!

Normalcy Bias's picture

We bullshitted some folks...

Save_America1st's picture

BINGO!!!

 

OBAMMY'S SINGLE-PAYER, GOV-SCUM, TREASONOUS, SOCIALIST, MARXIST TAKEOVER OF THE HEALTHCARE SYSTEM IN ORDER TO DESTROY ALL FREEDOM WHAT-SO-EVER IN AMERICA!!!

That was the plan from the beginning, but it really wasn't this fuck-tard's plan...it has been the treasonous plan of the Marxist, regressive, scum of the Earth who have been scheming this shit for over a hundred fucking years against not just America, but against the entire human race!

Nobody Important's picture

If they were going to impliment "Universal Healthcare", then that's the way it should have been set up in the first place. A single payer system like ALL the other countries that have set it up, done it. Private insurance companies should never have been involved. But no, America's obsession with unrestrained capitalism sold everybody out to the insurance companies, and made a total mess of it.

wet_nurse's picture

None of this shit will matter in a couple years

El Vaquero's picture

True, though it may take up to 7 or 8 years for it to not matter.  But I tend to be in the couple of years camp. 

 

That, and this isn't unrestrained capitalism.  TARP should have been the wakeup call for anybody who thought it was unrestrained capitalism.  That, or the bazillion pages of regulations that only huge businesses can afford to follow or ignore at a whim. 

lakecity55's picture

Yeah, I thought TARP was a big leap forward towards a great soviet, comrades!

Midas's picture

When did this "Unrestrained capitalism" take place?

shovelhead's picture

When the taxpayer picks up any losses incurred by wild eyed gamblers.

It sure is unrestrained something, but I don't think capital has anything to do with it.

Jerome Lester Horwitz's picture

That's caled Fascism, unrestrained or otherwise. Sure as hell is not capitalism.

NoTTD's picture

"Unrestrained capitalism"?

 

Delusional.

lehmen_sisters's picture

America hasn't even caught a glimpse of capitalism in the last 100 years bruh!

Save_America1st's picture

BINGO!!!

 

OBAMMY'S SINGLE-PAYER, GOV-SCUM, TREASONOUS, SOCIALIST, MARXIST TAKEOVER OF THE HEALTHCARE SYSTEM IN ORDER TO DESTROY ALL FREEDOM WHAT-SO-EVER IN AMERICA!!!

That was the plan from the beginning, but it really wasn't this fuck-tard's plan...it has been the treasonous plan of the Marxist, regressive, scum of the Earth who have been scheming this shit for over a hundred fucking years against not just America, but against the entire human race!

RichardParker's picture

unrestrained capitalism sold everybody out to the insurance companies...

bwhahahahahah...  We have not had a capitalist healthcare system since FDR due to employers skirting around the great one's price and wage controls during WWII.  Not to mention that insurance companies are EXEMPT from anti trust law.  Health insurance companies are flourishing under CRONYISM since FDR and wouldn't know capitalism (read: competition) if it slapped them upside the head.

Harry Paranockus's picture

These co-ops were the government's answer to the fact that they couldn't get single payer public option.

Save_America1st's picture

BINGO!!!  but with a catch!  They knew it would be a process that would take a little longer...it was all in the plans to make it "Constitutionally" legal by loading up the Supreme scum-sucking Court and blackmailing John Roberts who should now be jailed as fucking traitor for being a fucking treasonous pussy.

 

OBAMMY'S SINGLE-PAYER, GOV-SCUM, TREASONOUS, SOCIALIST, MARXIST TAKEOVER OF THE HEALTHCARE SYSTEM IN ORDER TO DESTROY ALL FREEDOM WHAT-SO-EVER IN AMERICA!!!

That was the plan from the beginning, but it really wasn't this fuck-tard's plan...it has been the treasonous plan of the Marxist, regressive, scum of the Earth who have been scheming this shit for over a hundred fucking years against not just America, but against the entire human race!

Save_America1st's picture

BINGO!!!

 

OBAMMY'S SINGLE-PAYER, GOV-SCUM, TREASONOUS, SOCIALIST, MARXIST TAKEOVER OF THE HEALTHCARE SYSTEM IN ORDER TO DESTROY ALL FREEDOM WHAT-SO-EVER IN AMERICA!!!

That was the plan from the beginning, but it really wasn't this fuck-tard's plan...it has been the treasonous plan of the Marxist, regressive, scum of the Earth who have been scheming this shit for over a hundred fucking years against not just America, but against the entire human race!

RafterManFMJ's picture

'Nuffin' he does was "supposed" to happen except that "gonna change your life" shit.

XXXXXXXX

So, the HNIC is in fact a Dindu Nuffin?

stormsailor's picture

why does everybody crash obama, he dindu nuffin.

Iam_Silverman's picture

"Sure, some folks are gonna get bounced (temporarily) but other folks are gonna get medical coverage (permanently)."

WTF?  Do you even know what you are talking about?  Those people who weren't covered by "health insurance" previously could fall back on MedicAid.  No one was denied medical services because of the inability to pay.

azusgm's picture

Don't know about the other states, but Medicaid has never been automatic in Texas except for a newborn of a Medicaid-covered new mother. There have always been plenty of people willing to scam Medicaid, but the program is means tested. The people who have been stuck in a painful position are the self-employed or under-employed or over-employed in low paying jobs. These are the people who have to go into the individual market.

No one was denied emergency medical services or emergency obstetric services. Just like today, if a person is uninsured and cannot make other arrangements to pay, they usually cannot access most care other than through the ER or L&D or what is available at county health (vaccines, etc.) It does not matter how badly they may need joint replacements, etc. to be able to be fully functional and get back to work. Don't expect cancer care either.

Iam_Silverman's picture

"Don't expect cancer care either."

I guess that if you modify your statement to read "don't expect top quality cancer care either", then you'd be right.  My BIL was treated for cancer under Medicaid.  He started treatments at the hospital in Palestine and ended up in Dallas at Parkland.  Self "employed" person too.  I pretended to miss him, for my sister's sake.

I live in a very small town in Central Texas (population around 700).  Many of the inhabitants are on some form of Medicaid (or CHIP).  Even with all of the goodness that O-Care was supposed to bring.  My tax dollars at work delivering anchor babies and patching drunks back together after they wreck their vehicles on the weekends.