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Health Insurance Co-ops Detail Growing Pains
HealthLeaders Media

Building a health insurance carrier from scratch is risky business. The rapid financial collapse of CoOportunity Health, an Iowa-based insurance cooperative launched last year, highlights the growing pains being experienced at nearly two dozen federally financed co-ops across the country.

Iowa insurance officials say two factors unraveled CoOportunity’s finances: higher-than-expected utilization costs among the cooperative’s exchange beneficiaries and an accounting switch Congress initiated in December that stripped $81 million from the co-op’s balance sheet.