"A nonprofit Kentucky health insurer created under Obamacare is shutting down because of staggering losses and not enough money from the healthcare law.
Kentucky Health Cooperative said Friday that it would not offer health insurance plans during open enrollment on Kentucky's state-run marketplace. Conservatives said the shutdown is indicative of growing problems with Obamacare, as Kentucky's co-op was the fifth to close its doors.
The cooperative, created under Obamacare to offer insurance to enrollees, said that losses started to mount and couldn't be overcome. A big problem is that the co-op had trouble paying out claims.
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The agency, which implements Obamacare, told the Washington Examiner that it is working with "Kentucky officials to do everything possible to make sure consumers stay covered."
The agency said that it knew not all co-ops, as start-ups, would succeed and the lower risk-corridor payment for Kentucky may have led to solvency concerns. Administration officials pledged to work with insurers and co-ops that were having solvency issues.
Conservatives pounced on the shutdown, with Kentucky Sen. Mitch McConnell saying it is evidence of a "poorly conceived, badly executed law."
"Despite repeated Obama administration bailout attempts, this is the latest in a string of broken promises," the Senate majority leader said.
Kentucky isn't the only state to lose its co-op. New York was forced to shut down its co-op, the largest in the nation, late last month due to financial problems.
Other states that shut down their co-ops include Iowa, Louisiana and Nevada."
http://www.washingtonexaminer.com/kentucky-insurer-shuts-down/article/2573818With more to come.
