A 10th co-op created under Obamacare has collapsed.
Combined, the failed nonprofit insurance companies have received more than $1 billion in loans with more than 600,000 consumers affected.
The latest casualty, the Utah Insurance Department, announced yesterday that Arches Health Plan, a consumer oriented and operated plan, or co-op, will not sell insurance in 2016. The co-op received $89.7 million in loans from the federal government.
“It is regrettable that the co-op model has not worked across the country,” Utah Insurance Commissioner Todd Kiser said in a statement. “I want to assure you that the Utah Insurance Department supports the state’s free market and works to help businesses succeed. We are proactively working with other insurers and the federal government to fill the vacancy left by Arches, particularly in the rural areas of the state.”