5 Challenges for CO-OPs

HHS will kick-start the CO-OPs process with $3.8 billion in loans, or about $100,000 per applicant to help fund feasibility studies and business plans.

Analyst Bradford Gray, Ph.D., wonders if that will be enough to guarantee the success of this latest option to individual and small business healthcare coverage.

In his report, CO-OPs: An Early Assessment of Their Prospects, Gray identifies five challenges he says CO-OPs face for long term success:

1. Building the provider network and administrative structures.
2. Building enrollment.
3. Overcoming the prohibition on marketing. 
4. The danger of adverse selection.
5. Making member governance work.

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