The risk adjustment program is just one problem with a flawed co-op program, analysts said. The co-ops were given federal loans for a fraction of the amount it costs to startup an insurance company and expected to become stable enough in three years to begin repaying their loans. They had to build a membership base from scratch, couldn't use their federal funding for marketing and were limited to operating in the individual and small group markets, which are known for being unprofitable for insurers.