The federal Centers for Medicare & Medicaid Services on Friday issued a $76 million loan to HealthyCT, in support of the physician coalition”™s plan for a private non-profit, health-insurance company.
CMS is funding CO-OPs (consumer operated and oriented plans) throughout the country as part of the Affordable Care Act. More than half of a CO-OP”™s directors must be customers or members, and all directors must be elected by a majority vote of the members. Any profits are to be plowed directly back to their enrollees in the form of lower premiums, expanded benefits, or improved quality.
HealthyCT is sponsored by the Connecticut State Medical Society. If approved by state regulators, the group expects to begin offering coverage as of October 2013.
“CO-OPs will promote competition and give consumers more health insurance choices,” said Marilyn Tavenner, acting administrator of CMS, in a written statement. “These new private nonprofit insurers will be run by consumers and are designed to offer individuals and small businesses more affordable, consumer-friendly and high-quality health insurance options.”
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