Americans for Limited Government President Bill Wilson responded to the release of the first eight grants/loans under the Obamacare created Consumer Oriented and Operated Plan (CO-OP) program today.
The CO-OP program was established under the Obamacare law to put into place one federal government selected group in every state that is supposed to provide an insurance alternative to those few companies that remain after the imposition of the law.
“These grants/loans reek of political payola as one group, the Saul Alinsky-affiliated, Common Ground Healthcare Cooperative of Wisconsin was formed in August, 2011 just three short months prior to applying for the taxpayer money. In true, Rules for Radicals fashion, Obama’s administration found this group worthy of receiving $56,416,000 in taxpayer largesse,” Wilson said.
“Only the most naïve would believe that this $56 million injection of money into the political charged atmosphere in Wisconsin is anything more than an attempt to buy votes in favor of the public employee recall election of Governor Scott Walker and to tip the balance in this important swing state in November,” Wilson continued.
“There are no lengths that Obama won’t go in his attempt to use Chicago-style politics to drive his election bid, and this $56 million to a group with no track record and dubious connections is just one more outrage,” Wilson added.
The rules governing the grants were issued on July 20, 2010 by Obama’s Health and Human Services Department and in those rules the CO-OPs were projected to result in a 35-40 percent default rate.
Other groups receiving grants are the Freelancers CO-OP of New Jersey, Freelancers CO-OP of Oregon, Freelancers Health Service Corporation (based in New York), New Mexico Health Connections, Montana Health Cooperative and Midwest Members Health (Iowa and Nebraska.)
According to Politico Pro, a private subscription news service, the CO-OPs have been termed government funded “venture capital for health care” by the executive director of the Freelancers Union Insurance programs. Ironically, the Freelancers programs have come under fire over the years for inefficient operations and a variety of difficulties regarding member coverage.
The CO-Ops will be able to offer health plans starting on January 1, 2014.