Obama Wasted $150 Mil on Bankrupt ObamaCare Insurance Corp

coop

When you blew over a billion dollars on a website that didn’t work, maybe complaining about spending over a tenth of that trying to bail out a non-profit company is loose change.

But the cascading wave of failures rippling through ObamaCare shows how deeply broken the whole model is.

An Obamacare-created and taxpayer-funded insurance company in Iowa has been taken over by the state due to a financial crisis.

That’s the great cycle of government, from crony capitalism to Socialism.

After just beginning to offer plans in 2013, the company’s already insolvent and has now been taken over by the state of Iowa, insurance commissioner Nick Gerhart announced Wednesday. CoOpportunity doesn’t have enough cash on hand to be sure it can pay claims for its 120,000 customers, if necessary. The company has only $17 million in cash and assets, Gerhart said.

The federal government’s Obamacare administrator the Center for Medicare and Medicaid Services initially gave CoOportunity a $112 million loan award in Feb. 2012, but doled out an additional $32.7 million emergency award to keep the company solvent in September of this year.

But CO did have a business plan. Getting the government to give them your money. Their backup business plan? Getting the government to give them even more of your money.

CoOpportunity’s management expected to receive more federal money than they did, putting them in continuing financial peril.

Their business plan was more federal money. Literally. That’s what we’ve come down to.

 

  • Scar

    The CEOs of CoOpportunity will simply pocket a few million and let the state insurance bureaucracy mishandle the bankrupt mess. Whether it be ObamaCare or the debacle known as the Stimulus Package, this type of criminal incompetence is the legacy of the Obama Administration.

  • dwayne roberson

    Only a birth pang of full blown Socialism…Owebamacare.

  • lyndaaquarius

    I recall reading how Obama and Bill Ayers blew through 50 million of the Annenberg Foundation $$$$ supposedly for “improvement” in the Chicago Public Schools,but there was no improvement and all the $$$ apparently was used for political favors.