Earlier this year, Mandy Cohen, a top official at the Centers for Medicare and Medicaid Services (CMS), told Congress eight co-ops are facing special scrutiny because of their poor financial statuses.
She said an “enhanced oversight” program is in place for some troubled co-ops and others are operating under a federally imposed “corrective action plan.”
Although CMS officials have steadfastly refused to identify the eight “at risk” co-ops, the annual reports clearly identify those facing grave financial problems. Data shows last year all 11 co-ops lost money and the red ink also afflicted the four “healthy” co-ops that may survive.
The co-ops with the most losses in 2015 were in Massachusetts, Oregon, Ohio, Connecticut, Montana, Wisconsin, Illinois and New Mexico. All eight burned through about 50 percent of their total assets in 2015. The assets were supposed to last for 20 years under the terms of the federal funding program.