CMS Awards Loans to 7 CO-OPs

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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.

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

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