U.S. Sen. Cory Gardner (R-CO) grilled Department of Health and Human Services Secretary Sylvia Burwell last week about the financial solvency of the non-profit insurer Colorado HealthOP and whether it will be able to repay $72.3 million in federal loans
A consumer operated and oriented plan (co-op) set up under the Affordable Care Act (ACA) as an alternative to private insurance plans, Colorado HealthOP reportedly serves 40 percent of Colorado’s health care exchange sign-ups.
The federal government issued approximately $6 billion in loans to similar co-ops nationwide, but a number of them have experienced financial difficulties, with those in Louisiana, Iowa, Nebraska and Nevada having failed outright.
“Considering the recent CO-OP closures, what metrics has your agency put in place as a basis to determine which CO-OPs are underperforming?” Gardner asked Burwell in a letter. “Has Colorado HealthOP been meeting its application projections, or has it been placed on boosted oversight by your agency?”
The poor performance of the co-ops, along with the lack of oversight by the Center for Medicare and Medicaid Services, has resulted in a federal loss of more than $277 million so far, Gardner also pointed out.
“Are there other metrics you consider to determine if Colorado HealthOP is on a sustainable trajectory?” Gardener asked. “Using these metrics, what is the estimated ability of Colorado HealthOP to repay its loans?”