Dive Brief:
- CMS Acting Administrator Andy Slavitt spoke at a Thursday hearing of the Senate Finance Committee regarding oversight of the heath insurance co-ops created under the ACA, of which about half have failed.
- Slavitt stated CMS would be working to recoup federal funding (about $1.2 billion) provided to the co-ops "where appropriate" and would continue "rigorous ongoing monitoring" of the remaining co-ops.
- A report prepared for the committee by the Joint Committee on Taxation added if any co-ops that fail also end up recording profits, they could lose their 501(c)(29) tax-exempt status and be subject to major tax bills, as LifeHealthPro reports.
Dive Insight:
Debate over the cause of the co-op failures centers on congressional action that impacted funding and protections, and on the other end, oversight and financial control by CMS.
Slavitt's statements outlined action the agency takes in monitoring the co-ops, including corective action:
"CMS regularly uses enhanced oversight plans (EOPs) and corrective action plans (CAPs) as part of our CO-OP monitoring and oversight process, as laid out in the CO-OP loan agreements and recommended by the HHS OIG," he said. "CMS places a CO-OP on an EOP or CAP when it identifies an issue that can be resolved through corrective action."
Slavitt did not specify which or how many co-ops are the subject of such actions.