Nevada co-op failure a sign of how the single-payer scheme is working?

Nevada Health Co-op office. (R-J photo by Jeff Scheid)

Obamacare is a black hole into which taxpayer money is being poured.

It is bad enough that the union-backed Nevada Health Co-op has gone belly up with little chance of it ever repaying its $66 billion federal start-up loan, since it lost $42 million in the past year and a half, but it also managed to blow through $10 million in in taxpayer money in 2014 through the Transitional Reinsurance Program, which is supposed to pay 80 percent of claims excess of $45,000 up to $250,000. This amounted nationally to $7.9 billion in 2014, on top of the $2.4 billion in loans to start-up those 23 co-ops, like Nevada Health Co-op, several of which has already failed and all but one are losing money.

According to the Federalist, the administration arbitrarily decided to pay 100 percent of those high-cost claims, but it still wasn’t enough to cover the Nevada co-op’s expenses.

The morning newspaper reported that the Nevada co-op had administrative expense-to-premium ratio at 37 percent — almost double the 20 percent allowed — partly due to sky-high salaries paid to executives with ties to a union that represents casino workers. The co-op in 2013 paid more than $1 million to just three executives. That might be one place to start looking for a way to recoup taxpayer money.

The newspaper also quoted an insurance executive who explained that most insurers require a 90-day waiting period to discourage people from waiting to sign up until after they become ill, but the co-op started with no waiting period and later went to a 30-day window in 2014, creating a costlier clientele.

Noting the Nevada co-op failure, Rick Moran at The American Thinker predicts, “The failure of the Nevada co-op serves to highlight the booby traps that are still in Obamacare — too few healthy people paying for too many sick people. Eventually, the numbers won’t add up for anybody, and the system will be threatened with collapse. At that point, Democrats will claim that the only salvation for the program will be a single-payer system run entirely by the government.”

That’s been the plan along, as Nevada Sen. Harry Reid once admitted. Asked on public radio two years ago if the country will eventually work beyond private health insurance, Reid enthusiastically replied, “Yes. Absolutely, yes.”

Reid said the country has to “work our way past” private health insurance.

“What we’ve done with Obamacare is have a step in the right direction, but we’re far from having something that’s going to work forever,” Reid was quoted as saying by the Las Vegas Sun. “We had a real good run at the public option … don’t think we didn’t have a tremendous number of people who wanted a single-payer system,” but he could not get enough votes then.

Perhaps Democrats will have a better shot once the system is totally broken.

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18 comments on “Nevada co-op failure a sign of how the single-payer scheme is working?

  1. nyp says:

    Yup, it is all part of the plan. The secret plan.

  2. nyp says:

    Wow, imagine that — a start-up venture that doesn’t succeed. Who would have imagined such a thing?

  3. nyp says:

    OK with me, given that the business plans of most of the start-up insurance co-ops forcast losses during the first three years of operation. That is usually the case with new insurance companies.

    However, it is quite possible that the entire co-op insurance project will fizzle out. That is OK with me as well. The Affordable Care Act contains literally dozens of ideas for lowering the cost of healthcare and for enhancing insurance coverage. Non-profit insurance co-ops that can compete with for-profit insurers are one such idea. If they end up working out and expanding their business, that is great news. If they do not succeed, then we cross them off the list of worthwhile experiments in reducing the growth of healthcare costs.

    That is the difference between liberals and conservatives. We try things out to see which ones work and which ones don’t work. That appears to be an alien concept to you guys.

  4. No, Obamacare shifts the cost from consumers to taxpayers.

  5. nyp says:

    No, Obamacare reduces the growth of costs through a host of different mechanisms.
    “The Centers for Medicare & Medicaid Services recently released health spending projections for 2014–2019 that are $2.5 trillion lower than projections made in the wake of the ACA becoming law. The primary factor for the lowered projections is historically low growth in health care spending since the recession. The report authors, however, point to several unmeasured effects of the ACA that also could be leading to lower-than-expected health care spending projections.”
    http://tinyurl.com/kqttqeu

    However, I agree that the Affordable Care Act does have a redistributive effect in that it shifts resources from richer, healthier people towards less-rich, less-healthy people.

    That is one of the things that makes it so great!

  6. Steve says:

    Yeah but single payer would do redistribution a whole bunch better, nyp….

  7. Nyp says:

    Indeed it might. But then, we would end up just like that Socialist totalitarian hell-hole, Canada.

  8. Steve says:

    That’s Democratic-Socialist to you, bub!

  9. Winston Smith says:

    OK class, repeat after me, “Hegelian Dialectic Process”…

  10. Barbara says:

    Liberals are great at “trying things out to see what works” when they are spending other peoples money.

  11. nyp says:

    It is our money — We the People

  12. Steve says:

    There it IS!
    nyp couldn’t be any more clear, liberals believe all money belongs to them, to be doled out only if they think you deserve some!

    Thank goodness he does’t write the laws!

  13. […] been the plan all along, as Nevada Sen. Harry Reid once admitted. Asked on public radio two years ago if the country will […]

  14. […] that mean the co-op plans to spend too much of its remaining assets on salaries for its Culinary union-linked […]

  15. […] co-ops set up under ObamaCare with taxpayer loans to provide competition and keep prices lower are going broke, including […]

  16. […] Nevada Health Co-op has already closed shop with little chance of it ever repaying its $66 billion federal start-up loan, since it lost $42 […]

  17. […] is better than leaving ObamaCare in place and letting it evolve in the single payer system Obama and Harry Reid wanted to begin […]

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