The closures have left some 550,000 plan members to find new coverage for 2016 and there’s concern that other co-ops with shaky finances could also collapse. The problem has opened a fresh new political wound for Obamacare. Republicans, who have tried repeatedly to repeal the law, say the Obama administration didn’t properly vet co-ops or act quickly enough when warning signs of failure first appeared.
They now worry that the federal government won’t be able to recoup $1.1 billion in federal loans that failed co-ops received.
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