Fiscal cliff deal ends insurance co-op loan program

Funding for an Affordable Care Act provision that supported the creation of insurance co-ops has been taken away as part of the fiscal cliff bargain that President Obama signed into law earlier this week (Source: "Health reform co-ops get torpedoed by fiscal cliff deal," Cincinnati Business Journal, Jan. 3, 2013).

The ACA set aside $3.8 billion for loans to nonprofit Consumer Oriented and Operated Plans that are designed to compete with private insurance providers. While about half of the funds have been loaned to 24 organizations across the country, the remaining funds were negotiated away as part of the fiscal cliff bargain.