Health Law’s Nonprofit Insurance Co-Ops Awash in Red Ink

Fed up with the insurance industry, Democrats used the health care overhaul to create nonprofit co-ops that would compete with the corporations
Health Law’s Nonprofit Insurance Co-Ops Awash in Red Ink
The Associated Press
Updated:

WASHINGTON—Fed up with the insurance industry, Democrats used the health care overhaul to create nonprofit co-ops that would compete with the corporations. Now a government audit finds co-ops are awash in red ink.

Only one out of 23 — the co-op in Maine — made money last year, said Thursday’s report from the Health and Human Services inspector general’s office. Thirteen lagged far behind their sign-up goals for 2014.

The Massachusetts co-op spent more than six times as much on administrative expenses as it collected in premiums.