HHS Announces Financing For Co-Op Insurance Startups
HHS will make loans totaling $161 million available to new non-profit insurance carriers.
The Hill: HHS Awards New Grants For Health Care Co-Ops
The Health and Human Services Department announced more than $160 million in loans Friday to help establish new insurance plans under President Obama's health care law. The new loans went to two organizations -- one in Massachusetts and one in Tennessee -- to establish new, non-profit insurance carriers. The new products, known as co-ops, must reinvest their profits toward providing better care or lowering premiums, and would have to follow the same rules as traditional insurers (Baker, 8/31).
Modern Healthcare: Co-Op Insurers Get $161 Million In Start-Up Loans From CMS
The CMS awarded a combined $161 million in startup loans Friday to two of the newest not-for-profit insurers authorized by the 2010 health care law. The latest awards to insurers that qualify as Consumer Operated and Oriented Plans bring the total the CMS has provided to the 20 such plans in 20 states to more than $1.5 billion since February (Daly, 8/31).
WBUR: Tufts, Vanguard To Launch New Health Insurance Program
Tufts Medical Center, its physicians, and the for-profit Vanguard Health Systems are sponsoring the first member-run health insurance plan in Massachusetts. Tufts and its partners won federal approval and $88.5 million dollars to launch a new health insurance option — Minuteman Health — around lower cost hospitals and providers with benefits designed by the members. And members will decide how to spend surpluses or profits, says Minuteman Health board chair Ellen Zane. “The surpluses will either go back to reducing the cost of the premiums or enhancing the benefits in the products. That is a major difference for this kind of product in the market,” Zane said (Bieber, 8/31).
The Boston Globe: Tufts Medical Center To Help Start Member-Owned Insurance Plan
Tufts Medical Center, its physician group, and the publicly traded parent company of MetroWest and St. Vincent hospitals have been awarded an $88.5-million loan by the federal government to create what would be the state’s only member-owned health insurance plan. The nonprofit Minuteman Health Initiative expects to offer coverage in Eastern and Central Massachusetts starting in January 2014, and its backers said its ownership structure would help the initiative lower costs (Conaboy, 9/1).