Co-op received funds from Centers for Medicare and Medicaid Services
The Centers for Medicare and Medicaid Services announced this week that Michigan’s Consumers Healthcare CO-OP (MCHCO) has been awarded with $72 million in funding. The money is meant to be used by the non-profit health insurance company to assist in controlling costs and making providing affordable health insurance coverage more viable. Though the Affordable Care Act may be in a state of limbo currently, the changes it has made to the health insurance industry have been profound. Many companies have has to make dramatic changes to comply with new regulations with non-profit insurance providers relying on government aid to make such changes.
MCHO to serve as alternative for health insurance exchange
The goal of MCHCO is to provide Michigan residents with access to affordable health insurance options. The co-op is meant to act as an alternative to the health insurance exchange that will take root in the state in 2014. The exchange is expected to be a home for affordable insurance policies, but state officials have been weary of the notion that an exchange will be able to meet the needs of the state’s population. The state developed the MCHCO with the support of provisions from the Affordable Care Act. Officials believe it will be a viable option for those experiencing financial troubles.
Co-op to be all-inclusive and member-run
The MCHCO is open to all consumers in the state, such as independent workers – a group of people that are often excluded from the health insurance market at large. The co-op is governed by a member-based board, which is meant to ensure that the organization will continue to provide services to Michigan residents based on their specific needs rather than those of the insurer. State officials note that those falling 400% below the federally establish poverty line will be able to receive assistance from the government that could cover the cost of policies sold by the co-op.
Funds to be used to strengthen the co-op’s operations in order to meet expected demand in 2014
The funds awarded to the MCHCO will be used to embolden the organization’s operations and prepare it for a veritable tidal wave of new customers that are expected to flood the state’s health insurance market in 2014.