NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases an update to its research report on the Affordable Care Act (ACA) and continuing collapse of the health care CO-OPs, that were created and funded as part of 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, only four 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. The initial funding on the now 19 closed CO-OPs of approximately $2 billion of taxpayer money is essentially gone; it was supposed to last 20 years. With sizeable rate increases requested for 2019, there is no relief in sight for Affordable Care Act insureds.
Please click here to access the report.
CONNECT WITH KBRA
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.