Via @Freddoso, this is possibly even a bigger deal than it looks. Basically, Arches Health Plan (the Utah Obamacare nonprofit co-op) has been essentially turned off, on very little notice. Over 65,000 people will pretty much lose immediately lose their insurance over this.
[The] 35,000 people who bought Arches [Health Plan cooperative] plans via the exchange or from insurance brokers or agents will now have to find new health insurance for 2016. The co-op also has to stop writing new policies for businesses immediately, Utah Insurance Commissioner Todd Kiser said. Arches insures 31,000 people through employer-sponsored plans, a spokeswoman said.
It was either turn it off, or watch it collapse on its own: Arches was locked into the same death spiral that has been plaguing state nonprofit Obamacare co-ops. Turns out that taking a ‘temporary’ government subsidy right from the beginning apparently does nothing for your eventual profitability except mask for a while the uncomfortable fact that you’re never going to be profitable. Who knew?
…Yes, that was a rhetorical question.
Continue reading Utah nonprofit co-op’s collapse illustrates Obamacare’s Big Lie.