HHS Providing Loans to Start Consumer Operated and Oriented Plan (CO-OP's)

February 22, 2012

Website Link  http://www.kaiserhealthnews.org/Stories/2012/February/21/health-coop-cooperatives-federal-loans.aspx

The Affordable Care Act creates a new type of non-profit health insurer, called a Consumer Operated and Oriented Plan (CO-OP). These insurers are run by their customers. CO-OPs are meant to offer consumer-friendly, affordable health insurance options to individuals and small businesses.

The federal government is offering loans to non-profit organizations to help establish CO-OPs. The aim is to increase competition among insurers, potentially reducing premiums and improving health care quality and customer service. In many states, only one or two insurers control the bulk of the health insurance business.