Hearing Hearing Date: February 25, 2016 2:00 pm 2154 Rayburn HOB

Review of Obamacare Consumer Operated and Oriented Plans (CO-OPs)

PURPOSE:

To question Centers for Medicare and Medicaid Services (CMS) about factors leading to the failure of over half of Consumer Operated and Oriented Plans (CO-OPs).
To examine whether the remaining CO-OPs are viable.

BACKGROUND:

CO-OPs are a type of private nonprofit health insurer established under the Patient Protection and Affordable Care Act (PPACA).
CMS has awarded $2.4 billion in loans to fund 23 CO-OPs, 12 of which have closed to date.
- Loans to the 12 failed CO-OPs total over $1.2 billion.
- Failed CO-OPs disrupted insurance for approximately 740,000 individuals and small-business employees.
Over half of the 11 remaining CO-OPs are on Enhanced Oversight Plans (EOPs) and/or Corrective Action Plans (CAPs).

Witnesses and testimonies: Dr. Mandy Cohen MD, MPH

Chief Operating Officer and Chief of Staff, Centers for Medicare and Medicaid Services
U.S. Department of Health and Human Services

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Mr. Al Redmer, Jr.

Commissioner
Maryland Insurance Administration

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