The House Bill introduced recently creates Consumer Operated and Oriented Plan programs ("CO-OP") which are nonprofit health insurance insurance cooperatives which are to be member-owned. The CO-OPs are a new type of health insurance which are not to be affiliated or the successor to an existing health insurance plan. Each CO-OP must be licensed in each state it plans to operate. There will be grants and loans available for the creation of these new entities.
The creation of the CO-OPs will be a new aspect to healthcare reimbursement. CO-OPs will need to rely upon professionals with the skills and expertise in health law to navigate the state and federal requirements which are applicable. Those firms which have historically represented health insurance plans and payors will no longer be able to provide assistance; either due to lack of experience and expertise or due to conflicts of interest in representing plans and payors and CO-OPs. However, those professionals who have counseled nonprofits and providers will be well-suited to advise on the creation and governance of these new entities.
As more details emerge on CO-OPs, additional considerations will doubtless be raised. Stay tuned.
Friday, October 30, 2009
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