ALBUQUERQUE, N.M. — The nonprofit insurance cooperatives formed under Obamacare with federal financial backing to compete with private insurance companies have had a rough time nationally, with two more shutting down in the past two weeks – in Oregon and Illinois.
According to Kaiser Health News, only seven co-ops will remain next year, down from 20 a year ago and 23 at their peak.
But Martin Hickey, CEO of New Mexico Health Connections says the cooperative here is on sound financial footing with over $63 million in reserves. The co-op’s membership has doubled over 2015 and is showing a slight first-quarter profit.
Nevertheless, Hickey said the Albuquerque-based nonprofit insurance cooperative is seeking sharp increases in its individual rates next year because it will have to pay a “risk adjustment bill” of $14.6 million to the Centers for Medicare and Medicaid Services for 2015.