The private coops established by the ACA were opposed by most progressive organizations. They were instituted as a diluted option instead of single payer option or direct government provision of coverage. They were designed to compete with private insurance giants with a start up grant. Coops are owned by the insured individuals but being small never had a chance against the Aentas and Cignas and Humanas. They were unable to attract enough enrollment to compete. That a few small coops have failed as was predicted by many is hardly a blip on the ACA landscape. The regulations which allowed the creation of coops also required them to be able to pay their bills like any insurer, but because they were small there was a large risk of failure, like a small credit union against big banks, with no government back up or rescue. Thus consumers wouldn't join as the risk of the "insurance" company disappearing was too great. Stupid idea hatched by Max Baucus to placate the conservative element in Congress hoping it might get some GOP or blue dog support. Not easy to start up a new insurance company in the complex health care environment.
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