An Obamacare-created and taxpayer-funded insurance company in Iowa has been taken over by the state due to a financial crisis.
CoOportunity Health is Iowa’s insurance cooperative — a nonprofit insurance company created by the Affordable Care Act to supposedly undercut the large, for-profit insurers that Democrats castigated as “greedy” and “evil” during the debate over health care reform.
After just beginning to offer plans in 2013, the company’s already insolvent and has now been taken over by the state of Iowa, insurance commissioner Nick Gerhart announced Wednesday. CoOpportunity doesn’t have enough cash on hand to be sure it can pay claims for its 120,000 customers, if necessary. The company has only $17 million in cash and assets, Gerhart said.
The federal government’s Obamacare administrator the Center for Medicare and Medicaid Services initially gave CoOportunity a $112 million loan award in Feb. 2012, but doled out an additional $32.7 million emergency award to keep the company solvent in September of this year.