WASHINGTON, DC - The House Energy and Commerce Committee, chaired by Rep. Fred Upton (R-MI), today released a new report chronicling the overwhelming failures of Obamacare’s CO-OP program. The report entitled, “Implementing Obamacare: A Review of CMS’ Management of the Failed CO-OP Program," was released ahead of Wednesday’s hearing examining the committee’s oversight and the future outlook of the health care law.
The executive summary of the report explains, “Less than three years into the program, only six of the original 23 CO-OPs remain, indicating the future of existing CO-OPs remains uncertain. … Moreover, a recent HHS-OIG report has found that the remaining CO-OPs are becoming financially insolvent, thus, reducing the likelihood that the federal government will be repaid for startup loans."
Among the report’s findings are:
* CO-OPs either failed to meet enrollment targets or surpassed enrollment capacity, and both scenarios created financial insolvency.
* CMS issued Corrective Action Plans (CAPs) in response to oversight conducted not by CMS, but rather state regulators and the HHS Office of the Inspector General.
* CMS issued CAPs that contained obvious errors and outdated information.
* Operational CO-OPs are not likely to pay back loans because of potential insolvency.
To help address these and other concerning findings, the report includes four recommendations:
“CO-OPs have been a disaster, and real folks across the country have suffered. From the hassle and danger of lost coverage to an over $1.8 billion I.O.U. to American taxpayers, the administration’s failures have come at a big price," said full committee Chairman Upton and Oversight and Investigations Subcommittee Chairman Tim Murphy (R-PA). “The mismanagement of the CO-OPs, like the state exchanges, is having a devastating effect on those that enrolled. For the six remaining, the risks far outweigh their potential and it’s critical that the Obama administration finally acknowledge they have a problem and prevent this wildfire from continuing to spread."
