Friday, December 19, 2014

Health insurer receives $65 million federal loan

(AP) - A Kentucky nonprofit that is one of the largest insurance providers on the state's health exchange received a $65 million federal loan last month to keep it afloat just days before the second open enrollment period began.
The Kentucky Health Cooperative received the loan from the Centers for Medicare & Medicaid Services on Nov. 10. The loan drew sharp criticism from Republican U.S. Sen. Mitch McConnell, who said it raises serious questions about the stability of the program.
CEO Janie Miller said the cooperative needed the money because it enrolled twice as many people as it had predicted when the company started last year. The company has 15 years to repay the loan, with interest, to the federal government.
More than 9,200 people have purchased a private health insurance plan on the state exchange since Nov. 15.

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