March 2, 2016
WASHINGTON, DC – Kelly Crowe, CEO of the National Alliance of State Health CO-OPS (NASHCO), made the following statement with respect to the financial losses the CO-OPs reported for 2015:
“CO-OPs’ financial challenges are similar to those of the large and well-established commercial insurers, which are projected to lose potentially billions during the early years of the ACA. Unlike their competitors, however, CO-OPs do not have the vast capital reserves to offset early marketplace losses – a reality reflected in CO-OPs’ 2015 financial reports.
“CO-OPs are committed to providing affordable and high-quality health insurance to the Americans who need it most. Hundreds of thousands of Americans are enrolled in a CO-OP, where they have a real choice and a type of member-focused health insurance that was previously elusive.
“Not unlike start-ups in any other industry, CO-OPs still are trying to scale their operations, build local brand recognition, and rationalize expenses after only two full years of existence. Combined with the disappointing breakdown in two of the three ACA risk mitigation programs, known collectively as the 3Rs, CO-OPs struggled financially in 2015. But, we are optimistic about – and already have evidence indicating – improved operational and financial performance in 2016.”