Will Consumers Sign On For Health Law’s Co-Ops?

Kaiser Health News and the Washington Post examine the likelihood of consumers choosing Co-Ops (Consumer Owned and Operated Plans) when they go onto the health insurance exchanges this fall. This fall is the moment of truth for 24 Co-Op plans created by the Affordable Care Act to increase competition and give consumers a greater say in their coverage. Funded by $1.9 billion in low-interest federal loans, the co-ops were tucked into the law as a compromise with those who had unsuccessfully sought a so-called “public option,” or government-run insurance plan.

But will customers buy insurance from upstart non-profits? And will the co-op plans be competitive with those offered by industry giants like UnitedHealthcare and Aetna which have the clout to exact big discounts from hospitals and doctor groups?

Four months before the opening of new online health insurance exchanges where the plans will be sold, there are some positive early signs: Proposed premiums in Oregon – one of a number of states to publish preliminary figures – compare favorably to what commercial plans are charging. A single nonsmoking 40-year-old will be able to choose a basic policy for $234 a month from Oregon’s Health CO-OP, or $251 a month from Freelancers CO-OP, which will also operate in the state. Comparable plans from other companies will cost from $169 to $422 a month, state data show. Still, there is skepticism in some quarters, especially from commercial insurers who say Co-Ops have an unfair advantage with their low-interest loans from the feds.

Several NBCH member coalitions are working on Co-Ops in their states.