Under Obamacare, the government lent $358 million to the 23 co-ops that were created under the program. The start up money was to be repaid in five years, unless of course the co-op went bankrupt, and HHS told the borrowers that they could legally redefine the debt as “surplus notes.”
As of the end of last year, 12 co-ops did as HHS recommended and thus subordinated the government’s claims against the entities below other lenders. So far 4 of the 12 have bankrupted and closed their doors.
Have we become so used to the massive waste and mismanagement of monies by our government that this is but a drop in the ocean?