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Program designed to help with new health cooperatives fails

1 year 2 months 1 week ago September 28, 2015 Sep 28, 2015 Monday, September 28 2015 September 28, 2015 8:40 AM in News
Source: Associated Press
By: Associated Press

BATON ROUGE- A federal program designed to aid federally created health plans such as the Louisiana Health Cooperative Inc. instead became the final nail in the ailing nonprofit's coffin.
    
Louisiana Health - taken over by state regulators on Sept. 1 - was one of 23 plans created nationally under the Affordable Care Act to ensure there would be competition among health insurers.
    
Altogether the co-ops received more than $2.4 billion in low-interest federal loans to get started. Only two have proven to be profitable amid restrictions that experts say have hampered the co-ops' development.
    
Louisiana Health had lost more than $28 million by the end of 2014, its first year of providing coverage, according to records filed with the state Department of Insurance. The risk-adjustment payment was a death blow.

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