CAHC Recognizes Rep. Adrian Smith with 2015 Affordability Champion Award

Today, the Council for Affordable Health Coverage awarded Representative Adrian Smith (R-NE) its Affordability Champion Award for his leadership on lowering health costs. Specifically, Congressman Smith introduced H.R. 954, which would exempt individuals who have lost health insurance because of a failed Consumer Operated and Oriented Plan (CO-OP) from paying penalties.

"We commend Representative Smith for his work to help Nebraskans and all Americans when their health coverage is lost because of a failed CO-OP," said CAHC President Joel White. "Hardworking Americans shouldn't have to lose coverage when a CO-OP disintegrates, and then pay a tax penalty for not having insurance."

Section 1322 of the Affordable Care Act (ACA) established the CO-OP program after efforts to include a "public plan option," which would have put a government insurance entity in competition with private insurers, failed. Proponents claimed these non-profit, consumer-run health plans would improve coverage, increase competition, and provide a more affordable coverage option.

However, CO-OPs are not living up to these expectations. In fact, 12 of the original 23 CO-OPs have completely collapsed due to financial insolvency, forcing enrollees to find other coverage or go without and face a possible tax penalty. Moreover, CMS has placed at least eight of the remaining 11 CO-OPs on "Enhanced Oversight" or "Corrective Action" Plans to assist CO-OPs that are struggling financially and/or may not be able to repay their federal loans.

CoOportunity Health, which served 120,000 people across Nebraska and Iowa, received $146 million in government loans. Because of massive losses and an unsustainable model, the state of Iowa seized CoOportunity Health and liquidated it in January 2015.

"Americans should not be penalized under a law when the law's own failed program prevented compliance," said Representative Smith. "As more than half of the ACA's CO-OPs have already collapsed, and the others remain on shaky financial footing, we must ensure taxpayers get answers regarding how their money was spent and provide relief for the hundreds of thousands of consumers who lost coverage through no fault of their own. I am honored to receive this year's Affordability Champion Award, and I will continue pressing for legislative solutions to protect Americans from the growing burdens of the ACA."

To view pictures from the award ceremony, please click here.

About the Council for Affordable Health Coverage
The Council for Affordable Health Coverage is a broad-based association of organizations representing consumers, physicians, small businesses, large employers, manufacturers and retailers, franchises, and insurers, working to lower health costs for all Americans.