5 Challenges for CO-OPs

Accountable care organizations, integrated delivery systems, and chambers of commerce are  likely candidates to form consumer-operated and -oriented health insurance plans. But one analyst wonders if $3.8 billion in government loans will be enough to guarantee the success of this latest option to individual and small business healthcare coverage.

2 comments on "5 Challenges for CO-OPs"
Arun K.Potdar (9/10/2011 at 10:10 AM)

How does the new CO-OP concept differ from now almost extinct Group Health Organizations (GHA)(HMO) of past? I worked for one in DC for 9 years. Yes, it is designed for the profits to be ploughed in but making profits is a Herculean task. Since everyone including the plan employees will own it and board will be elected by the membership, one can imagine who will be on the board and the politics of left vs. right will make profitable and rational decision making difficult if not impossible. Unless new version is designed to avoid the weak administrative structures of GHAs, CO-OPs are likely to follow the fate of GHAs and Union Benefit Plans. Lastly, will the State Insurance Commissioners have any controls like the guaranteed issues and rate setting criteria or is there another federal agency created for overseeing the Co-Ops?
bob (9/7/2011 at 5:19 PM)

Don't many [most?] of the problems correctly identified by Brad Gray disappear or can be dealt with readily by not-for-profit Blue Plans re-organizing as co-op's?


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