Federal officials are unsure how much the government will recoup of the $1.2 billion spent on loans and startup costs for a dozen health care cooperatives that later failed, including Kentucky’s.
The situation with the Kentucky Health Cooperative is complicated by the liquidation of the entity, which a state court ordered this month.
Under the Affordable Care Act, co-ops were created to increase competition among plans and improve consumer choice, according to a recent story by USA Today.
Of the 23 co-ops created, a dozen have failed, including Kentucky Health Cooperative.
About $2.4 billion of federal funds was put into the creation of the startup health insurance providers.
Since it was established, Kentucky Health Care Cooperative has been awarded a total of $146 million in federal loans, according to the Centers for Medicare and Medicaid Services.