Nonprofit Health Co-ops Struggling to Meet Enrollment Goals

Most of the nonprofit insurance co-ops established in 23 states under the Affordable Care Act have fallen short of their projections for enrolling people in new plans, raising questions about their long-term success and ability to repay $2-billion in federal startup loans, The Wall Street Journal writes.

Although several of the co-ops far exceeded enrollment projections for this year, 14 reported to the House Committee on Oversight and Government Reform that they have signed up far fewer customers than anticipated, with some falling tens of thousands short. Overall the 23 entities have enrolled more than 450,000 people, 22 percent shy of their combined projection.

The co-ops were designed to give customers alternatives to traditional plans, bolstering competition and exerting downward pressure on prices, but they were hampered by several factors during the initial main sign-up period, which ended in March. Some had higher premiums than other insurers in their states, and technical problems with state and federal enrollment Web sites also slowed signups.