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Conservative websites have been giddy in recent days because the fiscal deal President Barack Obama just signed repeals a piece of Obamacare—a long-term care program for the disabled that even the administration admits was not cost effective. But another section of the Affordable Care Act bit the dust at the same time, and consumers who will soon be required to purchase health insurance (i.e. everyone) should be none too happy about it.
The ACA established a federal loan program to subsidize nonprofit CO-OPs (consumer oriented and operated health insurance plans) so that these plans could participate in the new online health insurance exchanges with traditional plans. The goal: increasing competition and reducing costs for consumers. Half of the $3.8 billion allocated for the program has already been doled out to 24 nonprofits in 24 states, but the remaining $1.9 billion was slashed in the recent tax-cut deal.