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Newsletter Article


Kickstarting CO-OPs to Provide New Coverage Options

To address the lack of affordable health care coverage alternatives in many state and regional markets, the Affordable Care Act includes provisions that facilitate the development of nonprofit, member-run insurance companies known as Consumer Operated and Oriented Plans (CO-OPs). Under the law, CO-OPs must operate with a strong consumer focus, and profits must be used to further their mission through lower premiums, improved benefits, or improved quality of care. A new Commonwealth Fund issue brief examines strategies that CO-OP organizers can use to build sufficient market share, create integrated provider networks, and achieve cost savings through provider payment reform.

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