But, “A similar co-op serving Iowa and Nebraska was shut down by regulators in January after heavy losses, and the Colorado HealthOP’s losses were even greater when compared to its remaining funds, according to one analysis report.”
“In the second year of the state exchanges, the Colorado edition of the federally created {under the Affordable Care Act} Consumer Operated and Oriented Plans, or CO-OPs, upended the local marketplace by undercutting other plans’ premiums and pushing down federal subsidies available on the exchange.
“Colorado HealthOP, one of 23 CO-OPs nationwide, reduced premiums on its middle-tier, or silver, plans by an average of 10 percent. Its customer count shot up from about 14,200 in late 2014 to about 75,000 this enrollment period.”
If such co-ops can get their pricing right, they could surge around America, acting as a variant of the “public option” that polls suggested that most Americans wanted during the debate over the Affordable Care Act but insurance company’ lobbyists stopped the Obama administration and the then-Democratic-controlled Congress from including in the ACA.