Feds Will Struggle to Recoup Loans to Failed Obamacare Co-Ops

[Geee]

Free Beacon:

The federal government is unlikely to recover all of the taxpayer funds lent to failed Obamacare co-ops, according to an audit by the inspector general for the Department of Health and Human Services.

 

The 23 co-ops that were created under Obamacare received $2.4 billion in taxpayer funds from the Centers for Medicare and Medicaid Services, of which $358 million were designated for “startup” loans.

 

The startup loans were to be repaid within five years, as opposed to other loans that were to be repaid within 15 years.

 

The Centers for Medicare and Medicaid Services released a memo on July 9, 2015 informing the co-ops that they could convert their startup loans into surplus notes by amending their loan agreements.