New insurance cooperative has won approval to operate in West Virginia
A new insurance cooperative is preparing to make its entrance into the West Virginia market. The Kentucky Health Cooperative has received approval from the state’s Offices of the Insurance Commissioner and will be able to offer its health insurance products in West Virginia beginning in November of this year. The policies offered by the cooperative will go into effect on January 1, 2015. The co-op may bring some much needed competition to the state’s insurance market, encouraging other insurance organizations to lower rates in order to appeal more to consumers.
Insurance co-ops continue to grow in popularity among consumers
Insurance cooperatives are becoming more popular in the U.S. because of their core concept. These organizations are typically owned by the people that they provide insurance coverage to, which gives consumers a considerable amount of power. This is quite popular because the insurance sector has long been operating under a stigma that suggests most large organizations exist solely to exploit consumers rather than provide them with favorable services and products.
Co-op to begin open enrollment period in November of this year
The Kentucky Health Cooperative has formed the West Virginia Health Cooperative in order to enter into the state’s insurance market. The co-op will begin open enrollment in November of this year, alongside the state’s own health insurance exchange. Because it is a non-profit organization, it may be able to avoid some of the negative stigma that has come to surround the insurance industry in general. It will have to compete with other insurance companies and the state’s exchange in order to find success among consumers.
Co-op may be able to avoid some of the technical issues that have crippled exchanges throughout the country due to smaller scope and experience
The state’s insurance exchange has been well received by consumers, despite the prevalence of technical difficulties that has made it difficult for people to enroll into the exchange. Many of these technical difficulties are linked to the large size of the exchange and the West Virginia Health Cooperative may be able to avoid some of these problems because it will be considerably smaller in scope when compared to the state’s insurance exchange.