U.S. House committee subpoenas Illinois’ new ObamaCare exchange insurance company

As we reported a few days ago, one of the five companies participating in Illinois’ ObamaCare exchange is Land of Lincoln Health Inc., a startup funded by a $160 million federal loan to cover about 20,000 individuals in 2014. In Vermont, the federally funded Vermont Health CO-OP was denied its state insurance license, with a state regulator noting that the...

As we reported a few days ago, one of the five companies participating in Illinois’ ObamaCare exchange is Land of Lincoln Health Inc., a startup funded by a $160 million federal loan to cover about 20,000 individuals in 2014.

In Vermont, the federally funded Vermont Health CO-OP was denied its state insurance license, with a state regulator noting that the company was expected to face insolvency in just three years. That’s no surprise: the federal government predicts that 35 to 40 percent of these federal loans will never be repaid.

The loan program for these startups is the focus of four separate federal investigations. Land of Lincoln Health is a subject of at least one of those investigations.

The U.S. House Committee on Oversight and Government Reform recently subpoenaed them for records in their investigation of the loan program (citing the high loss rate and concerns surrounding how the administration awarded the loans).

They asked for:

• A copy of Land of Lincoln Health’s application for a CO-OP loan.

• A copy of the 2010 and 2011 Return of Organization Exempt from Income Tax Forms (Form 990) for Land of Lincoln Health’s and all of its sponsors and related entities.

• A list of all grants, contracts, and loans ever received from the federal government by Land of Lincoln Health’s or any of its sponsors and related entities.

• An itemized financial breakdown of how Land of Lincoln Health has spent and plans to spend money received through the CO-OP program from December 21, 2012, to the present.

• All documents and communications between or among any employees, agents, or contractors of Land of Lincoln or any of its sponsors or affiliated entities and any employees, agents, or contractors of the Executive Office of the President, the Department of Health and Human Services, or any other federal agency or department referring or relating to Land of Lincoln’s CO-OP loan or loan application, between March 23, 2010, and the present.

• All documents and communications between or among employees, agents, or contractors of Land of Lincoln Health and employees, agents, or contractors of its sponsors or affiliated entities referring or relating to Land of Lincoln’s CO-OP loan or loan application, between March 23, 2010, and the present.