One day after Hillary Clinton nodded her approval endlessly, as Sen. Bernie Sanders declared their party’s embrace of socialism, this news.
From The Chicago Tribune:
Illinois moved Tuesday to take control of Land of Lincoln Health to begin an orderly shutdown of the insurance company, meaning about 49,000 people will lose their health coverage in the coming months.
The state said it will allow policyholders to buy coverage from a different insurer before their Land of Lincoln plans are terminated, but it’s unclear when the policies will lapse.
“It’s a bad day for the marketplace in Illinois and our consumers,” said Jason Montrie, president and interim CEO of Chicago-based Land of Lincoln. “This is the end.”
The Department of Insurance said the decision was based on the startup company’s deteriorating financial condition. Land of Lincoln is required to pay $31.8 million to other insurers under a complex formula in the Affordable Care Act, which aims to keep premiums stable by balancing risks among insurers.
But the payment placed too much financial stress on Land of Lincoln after it lost more than $90 million last year.
Acting agency Director Anne Melissa Dowling tried to intercede on the company’s behalf by suspending the payment until Land of Lincoln received promised federal financial assistance under the health-care law, known as Obamacare. But the federal Centers for Medicare and Medicaid Services didn’t agree with Dowling’s plan.
“It’s frustrating that our consumers are being put in harm’s way,” Montrie said. “Nobody feels worse about this than me and my employees. We are so disappointed in the decision from CMS.”
A spokesman at the U.S. Department of Health and Human Services declined to comment. Dowling was unavailable for comment.
Nationally, Land of Lincoln was one of 23 nonprofit health insurers — co-ops, as they are commonly known — that started in 2014 thanks to $2.4 billion in loans provided under the health law.
The trouble with socialism, as Mrs. Thatcher, famously said is that eventually you run out of other people’s money, and Obamacare was the mother of all socialist, income-redistribution rackets. More truth about socialism here.
So, of course, 2/3 of these co-ops have collapsed because they are hemorrhaging money. Who could have predicted that would happen? Answer: Obama, and it’s exactly what he and the rest of the Left want so that the federal government to ride to the rescue with their decades-old dream of “single payer,” complete government control.
One other fact worth noting, from a story on the collapse of an Obamacare co-op in Oregon:
Obamacare co-ops have also been plagued by inept management and unrealistic business models.
As a report by the Daily Caller’s Richard Pollock found, 17 of the 21 co-ops paid out gratuitous salaries to executives reaching as high as $587,000, which is more than four times as much as the $135,000 median health insurance executive salary. Worse still, many of these executives had little to no experience in the insurance industry and some of these excessive salaries were disguised in financial documents as “management fees”. Last year, 21 of 23 co-ops posted losses.
What?? These executives didn’t manage OPM (Other People’s Money) as well as they would their own? ANOTHER SHOCKER!!
This news comes during the week that our delusional, first affirmative action president wrote (or put his name on) a piece for the journal of the American Medical Association touting the success of his Obamacare scheme.
We have mentioned that he’s delusional, right?