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December 30, 2014

Iowa Takes Over Strapped, U.S.-Backed Nonprofit Insurer

One of the 23 nonprofit health-insurance co-ops established nationwide under the Affordable Care Act is running out of cash despite receiving more than $145-million in federal loans, Bloomberg reports. CoOportunity Health, which operates in Iowa and Nebraska, has been placed under the supervision of Iowa's insurance regulator and is no longer signing up consumers.

The co-ops, or Consumer Operated and Oriented Plans, were designed to foster greater competition in the insurance market. While several have far outpaced enrollment projection, Obamacare critics have argued that the outlets are financially untenable and would squander government funding. CoOportunity lost $45.7-million from January to October of this year, according to a legal filing by Iowa Insurance Commissioner Nick Gerhart.