Monday, June 13, 2016
In an effort to ensure the financial viability of some surviving Consumer Operated and Oriented Plans,
... CMS and federal regulators are looking into a strategy that would let CO-OPs reclassify certain loans as surplus, which would give their balance sheets a better appearance, Politico reported on June 8. The CO-OPs have five years to repay the federal loans they received to get up and running. But their weak financial condition prompted CMS to treat those loans as equity instead of debt, according to the article. On May 26, Ohio-based Coordinated Health Mutual, Inc. became the thirteenth CO-OP to shutter its doors. The company lost $80 million last year and hasn't found its financial footing this year after losing about $30 million in the first three months of 2016. The company had about 22,000 customers, according to a May 31 research note from Citi Research analyst Ralph Giacobbe. The Government Accountability Office in March said more than 600,000 public exchange members have had their policies discontinued due to the closure of CO-OPs.