» News

Insurer with NY’s ‘worst’ record of complaints gets $340M Obamacare loan

Home - by - February 23, 2013 - 10:00 America/New_York - 4 Comments


A health insurance company headed by an old friend from when President Obama was an Illinois state senator got a $340 million federal loan to establish Obamacare co-ops in New York, New Jersey and Oregon despite having a chronic record of consumer and regulatory complaints.

The New York-based Freelancers Insurance Company has been rated the “worst” insurer for two straight years by state regulators, and data compiled by a national insurance association show an extremely high rate of consumer complaints.

The firm was founded in 2008 by Sara Horowitz, who worked with Obama while he was in the Illinois state senate to launch Demos, a left-wing, New York think tank funded in part by George Soros.

Before May 13, 2011, the Demos website described Horowitz and Obama as members of the founding group in 1999 that became “the core of Demos’ staff and Board of Trustees.”

Sometime between that date and Nov. 6, 2011, the Obama reference was deleted, according to cached versions of the site stored by the Internet Archive’s Wayback Machine.

Before incorporating FIC, Horowitz had established the Freelancers Union, a nonprofit organization that describes itself as offering “health insurance and other benefits, plus advocacy, solidarity, and resources for freelancers and independent workers.”

In 2012, Horowitz’s FIC won the largest single award under an obscure Obamacare provision that allocates $2 billion to establish 24 co-ops to compete against private insurers and state health insurance exchanges. Co-ops are collectively owned organizations that produce goods or services for the benefit of members instead of for profit.

The funds are awarded as tax-free loans by the U.S. Department of Health and Human Services’ Center for Consumer Insurance Information and Oversight.

The House Oversight and Government Reform Committee recently opened an inquiry concerning FIC’s eligibility for the loans.

In 2011, the New York State Insurance Department ranked FIC last among commercial insurers with the most complaints and 49th of 50 among all the state’s insurance providers, including health maintenance organizations.

In 2012, the Empire State insurance regulator again ranked Freelancers “worst” in complaints and 51st among 54 rated New York-based insurers.

The department ruled that “the health insurer did not comply with statutory or contractual obligations” in half the cases filed against Horowitz’s company by consumers.

MORE    http://washingtonexaminer.com/obama-ally-got-340-million-to-set-up-health-care-co-ops/article/2522229#.USelwva9LCQ


  1. AbigailAdams

    February 23rd, 2013

    Not only does this president seem to be breaking every man-made law, but he and his supporters seem to be breaking the physical law of gravity in their suspension of belief that he isn’t breaking any laws.

    If this goes on, our system of laws and justice will become meaningless. We’ve already got a fair number of people avowing to disregard a whole host of laws. Our system of laws, courts and justice is the only glue that keeps this country together.

    Thumb up +2

  2. Ted Nougat

    February 23rd, 2013

    Because being a Liberal means believing more funding is the solution to failing ideas.

    Thumb up +1

  3. Major Mal function

    February 23rd, 2013

    The $340 million was “for the children”. Obama crony Sara Horowitz just happened to be in the wrong place at the wrong time. Could have happened to any honest taxpaying citizen, so says Eric Holder.

    Thumb up +1

  4. scr_north

    February 23rd, 2013

    This government is a gigantic version of “The Sting” movie. They’ve played out the green energy scam and are now switching to the old health insurance swindle. Sombody needs to photoshop one of The Sting movie posters and substitute Obama and Reid for Newman and Redford.

    Thumb up +1