The loans — which must be repaid at a future date — are to fund health insurance co-operative startups in Louisiana and Maine. They will compete with private sector health insurance providers under a $2 billion Obamacare initiative to fund 24 co-op startups nationwide.
Both the Maine and Louisiana co-ops are among 13 under investigation by the House Oversight and Government Reform Committee headed by Rep. Darrell Issa, R-Calif.
In the Maine case, federal officials approved a $62 million loan to Maine Community Health Options even though its president had recently committed suicide after state police accused the co-op’s president of molesting teenage boys for decades.
Despite extensive media coverage of the scandal, federal officials approved the loan five months before Maine State Police made public a 104-page report detailing the abuse allegations over a 36-year period.
Read more from this story HERE.