This Obamacare Co-Op Was Supposed to Make Money. Instead, It Lost Over $15 Million.

A Nevada health insurance provider that received more than $65 million in taxpayer-funded loans from the federal government announced last week that it is discontinuing operations at the end of the year.

The Nevada Health Co-Op will close its doors beginning Jan. 1 because of “challenging market conditions.” The co-op will be the third of the 23 consumer-oriented and operated plans created under Obamacare to shutter.

“It is with deep sadness that based on challenging market conditions, the board made a painful decision to wind down operations of the Nevada co-op at the end of this year,” Stacey Hatfield, a member of the co-op’s board, said in a statement. “Rather than spending resources on next year’s uncertain market, we would rather make sure we protect our current members. This is all about providing the most affordable, effective health insurance and service possible.”

Co-ops were created under Obamacare to foster competition in areas where few carriers offered plans. The Nevada Health Co-Op was created in 2012 along with 22 others serving 26 states. They began providing insurance coverage in 2014, with Obamacare’s first open enrollment period.