Maine health insurance co-op is only one of its kind to earn profit last year

[jpak]

Source: Portland Press Herald

A Maine nonprofit health insurance co-op established under the Affordable Care Act was the only one of its kind in the country to earn a profit last year, a government audit shows. Others are awash in red ink and many have fallen short of their sign-up goals.

Formed in 2013 under President Obama’s signature health care law, the co-ops were provided with $2.4 billion in taxpayer loans to get off the ground. Last year, only one of the 23 co-ops – Maine Community Health Options – made money, said the report released Thursday.

“We hit all the right notes from the very beginning,” said Kevin Lewis, CEO of Lewiston-based Community Health Options. The Maine co-op has captured about 80 percent of the Affordable Care Act’s 75,000 people in the state’s individual insurance market, and has been so successful that it expanded into New Hampshire in 2015.

But it is an exception, according to the federal audit.

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Read more: http://www.pressherald.com/2015/07/30/affordable-care-acts-health-insurance-co-ops-struggling-federal-audit-shows/

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my insurance coop.

The best

Thanks Obama!

[FBaggins]

1. It isn't unusual for start-ups to take a few years before they reach profitability.

These aren't mom&pop diners, they're pretty complex operations.

[JDPriestly]

2. Used to be that you had to plan to operate in the red for about five years.

I don't know whether that is still the case.

Rates will probably have to rise. But it may be that a lot of people who opted for the co-op had not seen a doctor in a long time. I also wonder whether the doctors who treat the co-op patients are charging standard rates or not. Just curious about that.

[Android3.14]

3. And this was in spite of our Governor LePlague

Who'd a thunk it?

[FiveGoodMen]

4. What's wrong with this sentence?

"A Maine nonprofit health insurance co-op established under the Affordable Care Act was the only one of its kind in the country to earn a profit last year, a government audit shows."

[magical thyme]

5. nonprofits don't provide profits to shareholders. but they can have higher earnings than expenses,

which just enables them to re-invest into, in this case, the healthcare system or to provide a buffer against less positive years.

THey simply don't exist for the purpose of making a profit for investors.

[jtuck004]

8. The IRS may want to have a talk with them - or get a reporter with any business knowledge. n/t

[magical thyme]

6. it will be mine next year too.

I made a few dollars to much to qualify for ACA due to former employer. Left that job at the end of April and just applied for early SS, so come December I'll be signing on. I'm very healthy (knock wood) so I should be contributing to its success.

[jpak]

7. I'm right behind ya.