Could non-profit, member owned health insurance work? This looks like a great idea.

[cali]

A Vermont-based, member-owned cooperative is taking strides to becoming one of three chief health insurers in the state. But it’s not there yet.

The nonprofit Vermont Health CO-OP, or Consumer Operated and Oriented Plan, unveiled its new South Burlington headquarters on Tuesday, as it enters into the state’s application process to become a certified health insurer. In attendance at the opening of the CO-OP offices were Gov. Peter Shumlin, Rep. Peter Welch, and other federal and state lawmakers.

Earlier this summer, the CO-OP was awarded roughly $33.8 million in federal loans, which were set aside under the Affordable Care Act. About $6.8 million of that money was available for startup costs, including salaries and a lease on the 7,742 square-foot office space. The other $27 million is being paid incrementally to establish the company’s reserves. The CO-OP is one of 23 groups nationwide and four in New England to receive this type of loan from the Centers for Medicaid and Medicare Services.

If the company is approved by the state, CEO Christine Oliver said it would be the only Vermont health insurer owned and governed by the people it covers.

<snip>

http://vtdigger.org/2012/10/23/vermont-health-co-op-takes-shape-in-the-shadow-of-the-aca-exchange/

[Scuba]

1. Of course it can work. There are many examples.

[northoftheborder]

2. Yes 1,000,000,000,000,000

There are electrical coops all over this country, originally in rural areas, but small towns and suburban areas are now included. These started in the thirties - forties. Private utilities refused to serve these areas, saying too expensive to build lines, etc..... My dad was a part of that effort. They were set up with federal loans, similar to this health insurance coop in Vermont which are funded through the ACA. I remember Bernie Sanders being ecstatic that this was included in the bill. A little overlooked goodie.

Coops are a wonderful idea, and I would be glad to have them spring up all over... right under the noses of the greedy insurance companies.

[ileus]

3. Our hospital self insured

our 1200 employees for a few years....rates went up so much we the worker bees demanded a change. We're now with Public Employees Insurance and rates have remained affordable.

So for sure you need more than 1200 people for a successful non-profit insurance program.

[Schema Thing]

4. Sure, and every state is supposed to get one:

http://www.gpo.gov/fdsys/pkg/FR-2011-07-20/pdf/2011-18342.pdf


HHS Proposed Rule on Consumer Oriented and Operated Plans July 2011Proposed rule from the Department of Health and Human Services on the Consumer Oriented and Operated Plan or "CO-OP," which are designed to be private, non-profit health insurers with a "board made up of members, designed to offer quality, affordable, consumer-friendly health plans in every state," according to HHS. "The CO-OP program provides for loans to private entities with the goal to create a new CO-OP in every State to expand the number of Exchange health plans with a focus on consumer accountability. The CO-OP program contains extensive provisions to protect against fraud, waste, and abuse. Loan recipients are subject to strict monitoring, audits, and reporting requirements for the length of the loan repayment period plus 10 years. Recipients must submit semi-annual program reports and quarterly financial statements. Additionally, CMS will conduct audits, including site visits, as appropriate. CO-OPs must meet a series of milestones as laid out in their loan term agreements before drawing down any money from the program."