The House Oversight and Government Reform Committee staff claims some CO-OP plan organizers of trying to bend program rules in their favor.
The staff described the $2 billion in Patient Protection and Affordable Care Act CO-OP startup loan funding as an “Obamacare loan guarantee gamble.”
The committee unveiled the report today at a hearing.
Congress cut off CO-OP startup loan funding early, while some organizers had applications in the pipeline, but CO-OPs opened their doors in more than 20 states on Oct. 1, when enrollment started.
PPACA required the U.S. Department of Health and Human Services to lend CO-OP money only to organizers free of ties to carriers. HHS said it would back only organizers that seemed likely to start stable CO-OPs.
HHS ended up letting Freelancers Union, a New York health carrier that has a for-profit subsidiary, help organize CO-OPs in three states, the committee staff says.