Nonprofit insurers struggle in new marketplaces

Boston.com / Associated Press, April 3, 2014
A smorgasbord of options and lower prices for consumers were two of the chief selling points for President Barack Obama as he promoted his overhaul of the nation's health insurance industry, predicting Americans would see ''competition in ways we haven't seen before.'' Companies were even started as a way to encourage innovation and competition, namely 23 consumer-run, co-op insurers created with the help of $2 billion in federal loans. But rather than promote competition, the co-ops and smaller nonprofits in some states have languished behind major insurers, attracting in some cases minuscule shares of the market.

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