Evergreen, a health co-op in Maryland, came to life as a result of a $65 million loan from the federal government. The idea of the co-op is to provide lower cost health insurance to fulfill the promise of premium savings in the #Obamacare sales pitch.However, there is a problem.
Just days into the Obamacare enrollment fiasco, CEO Dr. Peter Beilenson had to blow up his business plan.
"We actually called a meeting immediately, upon learning of he difficulties with the exchange, of our entire 35-person staff and said, 'Listen, guys, we're going to have to switch our marketing strategy, our strategy of going after folks," Beilenson said.
That means forgetting about individuals for now and instead targeting small businesses the old-fashioned way, with phone calls and TV ads.
It's not just the lack of new enrollee's that is creating the problem.
Their biggest fear is that with the website problems, more of the people who enroll will be the sickest and most motivated. If that happens, insurers would have no choice but to raise premiums and that could cause more healthy customers to flee.
Well duh.
Heavily subsidized health insurance is like an "all you can eat buffet for a buck".
Why does this remind me of #Solyndra?
UPDATE [HGS]: Meantime, HHS Secretary Kathy "Baghdad Bob" Shecantbeseriousweighs in lies through her teeth:
UPDATE [HGS]: Meantime, HHS Secretary Kathy "Baghdad Bob" Shecantbeserious
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