CO-OPs- Iowa & Nebraska: Health Insurance Co-Op Awarded Loan in Iowa

The Centers for Medicare & Medicaid Services just announced that a nonprofit entity in Iowa and Nebraska, Midwest Members Health,known under the Affordable Care Act as a Consumer Operated and Oriented Plan (or CO-OP), has received a loan award from the Department of Health and Human Services. More information can be found here: http://www.healthcare.gov/news/factsheets/2012/02/coops02212012a.html

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All CO-OPs receiving loans were selected on a competitive basis through external and independent expert objective reviews and approval by CMS officials with private insurance expertise. Non-profits receiving the loans include: Freelancers CO-OP of Oregon, New Mexico Health Connections, Montana Health Cooperative, Midwest Members Health, Common Ground Healthcare Cooperative, Freelancers CO-OP of New Jersey, and Freelancers Health Service Corporation. Starting in 2014, these CO-OPs will operate in Oregon, New Mexico, Montana, Iowa, Nebraska, Wisconsin, New Jersey, and New York.

Today’s awardees will receive start-up and solvency loans to fund start-up activities required to become a health insurance issuer and enable them to meet State licensure, solvency and reserve requirements. Start-up loans must be repaid in 5 years and solvency loans paid back within 15 years. Like other plans, CO-OPs will meet State and federal standards for qualified health plans to sell coverage through the Exchanges and the State’s Small Business Health Option Programs (SHOP Exchanges).


http://thegazette.com/2012/02/21/health-insurance-co-op-awarded-loan-in-iowa-midwest-members-health-will-start-new-health-insurance-company/
Hat Tip: The Gazette