Kentucky's taxpayer-funded health insurance cooperative created under Obamacare failed last week, and it doesn't appear to be the last.

A confluence of factors such as limited government funding and a narrow business model are likely to shutter many more Obamacare co-ops in the next few years, experts say. The private, nonprofit co-ops were created under Obamacare to offer more competition on the marketplace insurance exchanges.

The federal government had given out $2.4 billion in loans to the 23 co-ops as of December 2014, according to recent findings.

Kentucky became the fifth state-run co-op to shut down since they were created in 2014, joining New York, Iowa, Louisiana and Nevada. That leaves the number of state-run co-ops at 18, with two of the biggest closed, and experts say the prognosis doesn't look good.

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