Co-Ops Report Early Enrollment Successes And Expansion Plans

By Jay Hancock

The Affordable Care Act’s nonprofit co-op health plans, which see themselves as the rebel alliance battling established insurers, have signed close to 300,000 members and are set to expand into three new states next year...Starting from zero in October, New York’s Health Republic Insurance has enrolled more than 50,000 policyholders, said John Morrison, who just stepped down as founding president of the National Alliance of State Health CO-OPs. That’s among the best results so far for 23 nonprofits created by the health law. CoOportunity Health in Iowa and Nebraska has also signed up more than 50,000; Colorado HealthOP, close to 9,000.

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Created by the health law to increase insurance competition and innovation, co-ops face big challenges as they try to build businesses from scratch while expanding access to care and embracing the chronically ill. The law prohibits them from using their federal startup loans to advertise. Not all of them recovered as well as CoOportunity Health from online problems that initially frustrated shoppers.

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Competing against Anthem BlueCross BlueShield (owned by WellPoint), Maine Community Health Options locked up 80 percent of the market in that state for plans offered through an online exchange to individuals and small businesses, said CEO Kevin Lewis. Kentucky Health Cooperative fought Humana and Anthem to win 61 percent of the business in that state, said CEO Janie Miller.

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So far co-ops have won between 15 and 20 percent of the total signups in the their 23 states, Morrison estimated...By adding competition and lowering prices, the community-run cooperatives will save billions for the consumers and taxpayers paying for insurance, Morrison said. Premiums in states with co-ops are 8.5 percent lower on average than in states without them, he said...Three co-ops are jumping borders. Montana Health CO-OP is setting up business in Idaho. Minuteman Health in Massachusetts is moving into New Hampshire. Kentucky Health Cooperative will start selling in West Virginia.

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