Letter to Secretary Sylvia Burwell - Sasse Requests Specifics on Failed CO-OPS

Letter

Dear Secretary Burwell:

Since my last inquiry into the Affordable Care Act's Consumer Operated and Oriented Plan (CO-OP) program, an additional seven CO-OPs have announced they will cease operations in 2016. As you know, this means nine out of 23 CO-OPS have now failed, accounting for about half of all CO-OP enrollees. Because hundreds of thousands of consumers are or were enrolled in these health plans and hundreds of millions of taxpayer dollars were loaned to these nine failed insurers, it is crucial that we understand the cause of these failures. I believe strongly that the people who have had or will have their coverage disrupted deserve answers.

To that end, please provide a complete and transparent accounting of the CO-OP program's widespread failures. This includes comprehensive answers to my two previous letters (sent May 22 and August 6) and basic documents related to the financial integrity and management of all nine unsuccessful CO-OPs. Please provide:

1. With respect to all closed or closing CO-OPs:

a. Any initial business plan and application for the loan funding opportunity;

b. Any semi-annual report, quarterly financial report, and milestone review;

c. Any performance certifications; and

d. Any document evaluating the CO-OP's financial viability or solvency.

2. Any report or evaluation produced by Deloitte LLC concerning any solvency or expansion loan awarded to any CO-OP.

I appreciate your cooperation in fully answering my previous questions and providing these documents. Please let me know if you need any clarification of these inquiries.

Sincerely,

Ben Sasse
U.S. Senator

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