Last week, the National Alliance of State Health CO-OPs, the trade association for Consumer Operated and Oriented Plans, sent a letter to HHS Secretary Kathleen Sebelius, urging that all CO-OP funding be restored in light of this month's fiscal cliff deal.
Within the fiscal cliff deal, CO-OPs — which are non-profit health insurers governed by consumers that will compete in the healthcare law's insurance exchanges — took a major blow. Congress rescinded the remaining $2.3 billion left in the program's coffers, meaning 26 states were left without a representative CO-OP. However, the 24 CO-OPs that signed loan agreements with HHS will not be affected.
John Morrison, president of NASHCO, said the group was shocked the non-profit health insurer program had its program gutted, saying the amount saved "pales in comparison" to the overall budget deficit and savings that would've been accrued if the program had reached its full potential.
"While the existing 24 health insurance CO-OPs remain in a strong position to create new forms of high-quality and low-cost health insurance, we were very disappointed that the fiscal cliff agreement targeted future CO-OPs for little rhyme or reason," Mr. Morrison said. "CO-OPs were created to introduce both competition and innovation into the health insurance marketplace, and starting in 2014, 24 states will enjoy these benefits. Unless something is done to reverse the cuts in the fiscal cliff agreement, Americans in the other 26 states will not have access to a health insurance CO-OP."
Forty other CO-OP groups submitted applications for loan funding the day before the fiscal cliff deal was crafted.
Within the fiscal cliff deal, CO-OPs — which are non-profit health insurers governed by consumers that will compete in the healthcare law's insurance exchanges — took a major blow. Congress rescinded the remaining $2.3 billion left in the program's coffers, meaning 26 states were left without a representative CO-OP. However, the 24 CO-OPs that signed loan agreements with HHS will not be affected.
John Morrison, president of NASHCO, said the group was shocked the non-profit health insurer program had its program gutted, saying the amount saved "pales in comparison" to the overall budget deficit and savings that would've been accrued if the program had reached its full potential.
"While the existing 24 health insurance CO-OPs remain in a strong position to create new forms of high-quality and low-cost health insurance, we were very disappointed that the fiscal cliff agreement targeted future CO-OPs for little rhyme or reason," Mr. Morrison said. "CO-OPs were created to introduce both competition and innovation into the health insurance marketplace, and starting in 2014, 24 states will enjoy these benefits. Unless something is done to reverse the cuts in the fiscal cliff agreement, Americans in the other 26 states will not have access to a health insurance CO-OP."
Forty other CO-OP groups submitted applications for loan funding the day before the fiscal cliff deal was crafted.
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