Administration pledges to recoup lost Obamacare insurer money


The Obama administration pledged Tuesday to get back the $1 billion in taxpayer funding for 11 Obamacare insurance startups that have failed, but admitted it doesn't know how much it can recover.

Under grilling from Republican lawmakers, an administration official said during a congressional hearing Tuesday that it will use "every tool available to recoup money" from the "consumer oriented and operated plans" created under the Affordable Care Act.

The law created 23 co-ops to spur more competition on the marketplaces, but financial woes have prompted 11 of them to close down. The law provided $2.4 billion in federal funding for the co-ops, $1 billion of which was given to the 11 that are shutting down.