Community Health Alliance awarded status as a CO-OP by HHS

Community Health Alliance, based in Knoxville, TN, announced on Tuesday that it has been awarded status as a Consumer Operated and Oriented Plan (CO-OP) by the U.S. Department of Health and Human Services (HHS). The designation, won through an extremely competitive application process, allows the CO-OP to borrow up to $73 million from the federal government to provide high quality, affordable and consumer-driven health insurance to Tennessee consumers and businesses starting in 2014.

Community Health Alliance is a non-profit mutual insurance company that will be governed by a Board of Directors elected from among its members. To keep its CO-OP designation, Community Health Alliance is required to return value and profit back to its subscribers in the form of consumer-friendly benefit plans, reduced premiums and/or expanded services.

“Community Health Alliance is an exciting development in the marketplace for our state”, said Community Health Alliance President/CEO, Jerry Burgess. “It brings together purchasers, health care providers and others to work on new ways to keep insurance costs down and people healthy. There’s a lot of good work already done in our state that we can and will build upon – this is an exciting next step forward.”

A CO-OP is a private company, not a government program, and all loans must be repaid within 15 years. Congress’ intent in creating CO-OPs was to provide consumers and employers with a truly not-for-profit, consumer-focused health plan alternative that will compete fairly with other insurance companies. COOPs are licensed by state insurance departments and come under the same state regulations as all other carriers. Community Health Alliance will begin enrolling members in the fall of 2013, for coverage effective 2014.

Additional details can be found here. For more information visit the Community Health Alliance website at www.communityhealthalliancetn.org or contact Jerry Burgess, President/CEO, Community Health Alliance, 888-415-3332, jburgess@communityhealthalliancetn.org.