NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) published an insurance research report on the continuing collapse of the health care CO-OPs, that were created and funded as part of the Affordable Care Act (ACA).
The Patient Protection and Affordable Care Act, more commonly known as the Affordable Care Act or Obamacare, was signed by President Obama on March 23, 2010. ACA was designed to improve access to affordable health coverage, and reduce the number of uninsured adults in the United States. The ACA also gave rise to the establishment of qualified non-profit health insurance issuers to offer competitive health plans in the individual and small group markets called the Consumer Operated and Oriented Plan (CO-OP) program. With this, the federal government pumped approximately $2.5 billion to fund these 23 CO-OPs covering 26 states.
However, with the recent closings of Health Care CO-OPs at Connecticut, Oregon, and Illinois, only 7 of the original 23 Health Care CO-OPs established and funded as part of the Affordable Care Act remain active. Losses from the collapse of the CO-OPs are in the billions of dollars and have forced thousands of insureds to scramble for alternative coverage. With other remaining CO-OPs facing financial difficulties, KBRA believes additional closures will occur during the second half of 2016.
Please click here to access the report.
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KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).