Among many disastrous provisions of ObamaCare was creation of "public option" non-profit cooperatives funded by enormous federal loans to compete with existing health insurance companies on an uneven playing field.
Federal regulation 45 CFR 156.520(a)(2) made clear that the intent of the "Affordable Care Act" was to work around state laws to rig up ways to help cooperatives avoid solvency requirements and show these federal loans as assets rather than what they obviously are -- liabilities. Kentucky's Insurance Code, long a porous mess for big-government activist regulators, gives an Insurance Commissioner extremely wide latitude in deeming an insurance company's liabilities as assets, consumers be damned.
If elected Governor, Bevin gets to appoint an Insurance Commissioner. His appointee could then deem Kentucky Health Cooperative's loans as liabilities and order the insolvent insurer to shut down immediately to protect consumers. Continuing to prop up the law with illegitimate executive orders and regulations serves only to delay real reform.
This is a great election issue because it exposes another ObamaCare fraud and puts Jack Conway in the position of assisting his political pals in defrauding consumers or angering his left-wing base.
