Lankford, Jordan Investigate Solyndra-Like Health Insurance CO-OP Program

Press Release

Representative James Lankford (R-OK), Chairman of the House Oversight Committee's Subcommittee on Energy Policy, Health Care and Entitlements, joined Rep. Jim Jordan (R-OH), Chairman of the Oversight Subcommittee on Economic Growth, Job Creation and Regulatory Affairs, to investigate the Obama Administration's CO-OP health insurance loan program.

"The Oversight Committee led the way with an extensive investigation into the controversial failure of federally-backed solar companies like Solyndra. The American people deserve continued congressional oversight as the Administration again picks winners and losers, this time with health insurance companies," said Lankford.

The President's healthcare law designated $6 billion to establish non-profit health insurance issuers, known as CO-OPs, to compete with private insurers. Funding for the so-called CO-OP program was reduced in 2011, but approximately $2 billion was already awarded to establish 24 of these entities across the country. The Office of Management and Budget estimated the taxpayer loss rate for the program would be 43 percent, raising questions of viability of the loan recipient companies.

"Our job on the Oversight Committee is to investigate federal programs and agencies on behalf of the taxpayers and ensure that the current Administration is not gambling or rewarding with taxpayer funds," continued Lankford.

"We also examined the federal award process, since companies who have received loans through the CO-OP program are also coincidentally donors to President Obama's campaign efforts. The federal funding award process should be politically neutral.

"We will continue to seek answers to our lingering questions regarding the politicization and viability of loan recipients within the CO-OP program. We will protect taxpayers nation-wide by ensuring the Administration is not taking unnecessary gambles with hard-earned tax dollars to promote the President's political agenda," concluded Lankford.

Source