Kiss That Money Good-bye

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.

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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?

4 Comments on Kiss That Money Good-bye

  1. This article is horribly incorrect. $2.5 BILLION was ‘lent’ to the Obamacare co-ops 17 of the 23 are now bankrupt. The latest “LOL” Health (Land of Lincoln) was just shut down by the Illinois Department of Insurance after racking up more than $100 million in debt. Forward!

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