CMS has awarded repayable loans to seven Consumer Operated and Oriented Plans, which are non-profit and consumer-governed health insurers created under the Patient Protection and Affordable Care Act, according to a CMS news release.
CO-OPs loans, which were created to support the start-up of new, innovative health insurers, must be repaid with interest and will only be allocated to non-profit entities that show they could be financially stable. Start-up loans must be repaid in five years, while solvency loans must be paid in 15 years.
The seven CO-OPs receiving loans are:
• Freelancers CO-OP of Oregon
• New Mexico Health Connections
• Montana Health Cooperative
• Midwest Members Health
• Common Ground Healthcare Cooperative
• Freelancers CO-OP of New Jersey
• Freelancers Health Service Corporation
Those CO-OPs will operate in Oregon, New Mexico, Montana, Iowa, Nebraska, Wisconsin, New Jersey and New York starting in 2014. CMS will continue to award loans on a rolling basis.
CO-OPs loans, which were created to support the start-up of new, innovative health insurers, must be repaid with interest and will only be allocated to non-profit entities that show they could be financially stable. Start-up loans must be repaid in five years, while solvency loans must be paid in 15 years.
The seven CO-OPs receiving loans are:
• Freelancers CO-OP of Oregon
• New Mexico Health Connections
• Montana Health Cooperative
• Midwest Members Health
• Common Ground Healthcare Cooperative
• Freelancers CO-OP of New Jersey
• Freelancers Health Service Corporation
Those CO-OPs will operate in Oregon, New Mexico, Montana, Iowa, Nebraska, Wisconsin, New Jersey and New York starting in 2014. CMS will continue to award loans on a rolling basis.
Related Articles on CO-OPs:
IRS Issues Temporary Rule on CO-OP Tax-Exempt Status
HHS Issues Final Rule for CO-OP Program
CMS Accepting Loan Applications for CO-OP Insurance Plans