You read it here first.
In July a Louisiana ObamaCare insurer closed, and I asked whether this could happen in Nevada next. Nevada Health Co-op got a $66 million federal loan to enter the market, but, according to The American Spectator, it lost $20 million this past year.
Today the R-J reports that Nevada Health Co-op will close on Dec. 31. Its customer will have to find another insurer by Jan. 1.
Here is a clip from that American Spectator article:
Nevada health co-op has another problem in addition to sky-high salaries, nepotism. Nevada Health CO-OP is top-heavy with members of the long-troubled UNITE HERE union, which represents casino workers in the state and has been accused of corruption by other union officials.
Tom Zumtobell, the co-op’s CEO, received $414,000 in 2013. He is a former UNITE Here vice president and lives in Reno, 450 miles from the co-op’s Las Vegas headquarters. Kathy Silver received $377,000 as the co-op’s treasurer. Silver is the former board president of the local UNITE HERE chapter.
Bobbette Bond, the co-op’s secretary, hauled in $222,000. She was UNITE HERE’s chief lobbyist. Her husband is Donald “D” Taylor, UNITE HERE’s national president and a director of the co-op.
The Co-op’s website today reports:
The Board of Directors of the Nevada Health CO-OP has voted to cease operations beginning January 1, 2016 due to market conditions. At the same time, the Board voted to continue serving members through the end of the year to protect the health insurance of its current membership. Since the closure is voluntary, it should have minimal impact to members and providers.
“It is with deep sadness that based on challenging market conditions, the Board made a painful decision to wind down operations of the Nevada co-op at the end of this year,” said CO-OP Member and Board Director Stacey Hatfield. “Rather than spending resources on next year’s uncertain market, we would rather make sure we protect our current members. This is all about providing the most affordable, effective health insurance and service possible.”
That was no mention of whether that federal loan would be repaid.