Federal Grant Will Create Consumer-Driven Health Insurance Plans In 2014.
ByMcClatchy (2/22/12) reports, “Seven organizations will receive a total of $639 million in federal low-interest loans to launch new, consumer-governed health insurance plans in eight states, the federal government announced Tuesday. The new plans, authorized by the 2010 health care law, are scheduled to open for business in 2014.” The plans “primarily will serve Americans under age 65 in the individual and small-group insurance markets.”
The AP (2/22/12) says the plans “will be designed to offer coverage to individuals and small businesses. Supporters say the co-ops will keep pressure on private insurance companies for both price and coverage. Critics, led by House Republicans who voted last year to repeal the health care law, immediately questioned the administration’s decision. The House Ways and Means Committee called the loans a political reward to a friendly constituency.”
The Hill (2/22/12) “Healthwatch” blog quotes the CMS’ Marilyn Tavenner, who said, “We are excited to support the health insurance CO-Ops,” which “will promote competition in the insurance market and respond well to the health care needs of Americans.” Kaiser Health News (2/22/12) and Modern Healthcare (2/22/12) also report on the loans.
Bloomberg News (2/22/12) reports that “the Freelancers Union, a nonprofit created to represent freelance workers and independent contractors, will receive $341 million in loans from the US government to start health insurance plans in three states.” Bloomberg adds that the health plans “will compete with for-profit offerings from companies including UnitedHealth Group Inc. and WellPoint Inc. and nonprofit Blue Cross plans beginning in 2014.”
The Billings (MT) Gazette (2/22/12) reports, “The fledgling Montana Health Cooperative on Tuesday became one of the first co-ops in the nation to win a federal loan, which will provide $58 million toward setting up the new, member-owned health insurer for Montana individuals and businesses. … The US Health and Human Services Department gave the Montana co-op a $6.7 million start-up loan to pay for administrative costs of setting up the co-op and another $51 million loan to pay operating costs, such as claims payment.” On its website, KRTV-TV Great Falls, MT (2/22) also reports on Montana’s loan.
KCCI-TV Des Moines, IA (2/22/12) reports on its website, “The federal government has approved the first health care co-op for Iowa that will be set up as part of the new healthcare reform law. Midwest Members Health will offer affordable health insurance options to Iowans who have no access to health insurance through their employer.”
New Mexico Business Weekly (2/22/12) that New Mexico Health Connections “has received a $6 million loan from the federal government to start a consumer-oriented health plan from scratch that will cater to individuals and small employers.”
The Oregonian (2/22/12) reports, “Oregon’s first consumer-operated health plan will receive more than $59 million in start-up and solvency loans from the federal government.” The Eugene (OR) Register-Guard (2/22, McDonald) also reports on Oregon’s loan.
The Omaha World-Herald (2/22/12) reports, “Midwest Members Health, a new health insurance cooperative for Iowa and Nebraska, will receive a $112 million federal loan to pay startup costs and provide initial financial backing under the federal Patient Protection and Affordable Care Act.” The coop is being organized by “David Lyons, former Iowa insurance commissioner and CEO of the Iowa Institute in Des Moines; Cliff Gold, a former senior executive with Blue Cross Blue Shield in Iowa and CEO of Cliff’s Edge Strategies; and Stephen Ringlee of Ames, Iowa, a venture capitalist.”
May / 14 / 2012
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