Via HotAir:

After a month of the ObamaCare fiasco, insurers find themselves staring into the abyss of the “death spiral” — the risk-pool meltdown of accepting too many high-maintenance consumers without enough low-maintenance consumers to spread the costs. CBS Evening News focused on one such insurer, a new co-op in Maryland that got its start from a $65 million federal loan and planned on marketing mainly within the ObamaCare exchange. After a few days of watching HHS flounder, the CEO threw out that business plan entirely.

How many enrollees has he seen in a month? Maybe a dozen, and he needs 15,000 by the year’s end in order to break even:

[….]

The Obama administration tried to spark the creation of enough co-ops to give people a wider range of choices, especially in rural areas.  So far that’s been a bust, as the New York Times reported last week and CBS confirmed on Monday.  Fifty-eight percent of the counties serviced by the federal exchange only have one or two insurers offering plans, even with the hundreds of millions loaned out to these co-ops.

That, however, is a secondary consideration for Evergreen and its CEO.  If he can’t sign up more than a dozen a month, or even a dozen a day, he’s going to be out of business — and he won’t be the only one looking at a death spiral, either.  Small wonder they’re looking for corporate business, but that’s not a natural market for smaller co-ops, especially not those who picked the wrong business plan in the beginning.