KBRA Updates Affordable Care Act Research
July 11, 2018
Kroll Bond Rating Agency (KBRA) recently released an update to its research report on the Affordable Care Act (ACA) outlining the continuing collapse of the healthcare Consumer Operated and Oriented Plan (CO-OP) programs that were created and funded as part of the ACA. The latest report is titled No Relief in Sight for Affordable Care Act Insureds.
The Patient Protection and Affordable Care Act, more commonly known as the ACA, or Obamacare, was signed by President Barack Obama on March 23, 2010. The 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 nonprofit health insurance issuers to offer competitive health plans in the individual and small group markets called CO-OP programs. With this, the federal government pumped approximately $2.5 billion to fund these 23 CO-OPs covering 26 states.
However, only 4 of the original 23 healthcare CO-OPs that were established and funded as part of the ACA 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 ACA insureds.
Complimentary access to the full report, No Relief in Sight for Affordable Care Act Insureds, is available on the KBRA website with registration.
July 11, 2018