New Nonprofit Health Insurers Languish in Obamacare Signups

The health-insurance co-ops and other small nonprofit providers that sprouted up with federal help to encourage innovation and competition in the field are attracting just a sliver of the millions of people enrolling for coverage under the Affordable Care Act, the Associated Press writes.

Most people using the new insurance exchanges—well above 90 percent in some states—are signing up with large, traditional providers such as Blue Cross Blue Shield, according to an AP review of enrollment in the 14 states running their own exchanges.

Twenty-three consumer-run insurance co-ops received $2-billion in federal startup loans, but their ability to attract customers has been hampered by lack of name recognition; restrictions on their ability to advertise and lobby—a condition of receiving government assistance; and problems with their enrollment websites. With the slow start, some of the new entities have adjusted their business plans and signup goals.