Fannie Med Implodes : An ObamaCare-funded insurer in Iowa is sent to the morgue.

The Wall Street Journal reports:

Liberals claim ObamaCare is “working,” whatever that means, but the reality is that the law is seeding the insurance markets with land mines that will explode over time. The sudden detonation of a taxpayer-backed insurer in Iowa and Nebraska is an early warning.

Last week the Iowa Attorney General and insurance commissioner forced a nonprofit insurance start-up called CoOportunity Health into “rehabilitation,” akin to receivership in bankruptcy. The company received some $146 million in low-interest loans and grants from the Health and Human Services Department, but after fewer than two years in operation it is now in “financially hazardous condition” and pointed inexorably toward insolvency, according to the filing. Call it the Solyndra of ObamaCare.

The insurance commissioner will take over management of operations and attempt a financial turnaround, but the next legal step is liquidation. Iowa and Nebraska officials banned CoOportunity from participating on the ObamaCare exchanges and are encouraging the company’s 96,350 consumers to switch insurers.

The critics predicted as much years ago (see “Fannie Med,” June 6, 2012). CoOportunity was among the insurance co-ops financed by the Affordable Care Act, much like credit unions or the rural electricity and feed-and-seed collectives of the Depression era. To placate progressives angered by the lack of a government-run “public option,” the law converted HHS into a venture capital investor, and the bureaucracy pumped $1.9 billion into two dozen outfits that now cover about 450,000 Americans.

The struggles of fascism , also known as the "public-private" partnership.