Duh.

Las Vegas Review-Journal:

Co-op CEO Pam Egan said a second year of high claims costs and limited growth projections for enrollment made it "clear" the insurer would have a hard time providing "quality care at reasonable rates" in 2016.

"(Nevada Health CO-OP) is working responsibly and proactively with the Nevada Division of Insurance and the Centers for Medicare and Medicaid Services to ensure that we meet all deadlines and fulfill obligations to our current members," Egan said.

The nonprofit said members' policies will stay in effect through Dec. 31, and it is committed to fulfilling obligations to enrollees. It also said it will continue paying broker commissions.

Amid reports that the Affordable Care Act has slashed the nation's share of uninsured from more than 17 percent to less than 12 percent, the co-op's fate is a reminder that some components of the law don't work as intended.

Observers say the co-op, as idealistic as its origins were, could not survive market realities amid early troubles with doctor networks, reimbursements, off-exchange coverage and administrative costs. The co-op's failure is something of a blow to the state's competitive landscape, and it's unclear if it can repay $65.9 million in federal loans it received for its 2012 launch.

EARLY CONCERNS

Obamacare included member-run, locally based nonprofit insurers to increase competition for existing carriers. The idea initially worked: Nevada Health CO-OP had more than a third of the market in the 2013 enrollment period, beating out big, publicly traded competitors UnitedHealth Group and Anthem Blue Cross and Blue Shield.

But the market balanced out in 2014 and 2015, and the co-op slipped out of the top spot. Recent financial statements show it struggling to make money.

The nonprofit reported a $19.3 million operating loss in 2014, and a $3.5 million first-quarter loss through March, according to Centers for Medicare and Medicaid Services records. From January through June, it lost $22.7 million.

Some local insurance brokers said they had reservations early on about the co-op.

Pat Casale, managing partner of The MultiCare Group in Las Vegas, said he sold few co-op plans because he "wanted to kick the tires and make sure the vehicle drove well." He said his clients gravitated toward established, multibillion-dollar insurers as a safer bet.