For Immediate Release: Wednesday, February 22, 2012
Contact: Joshua Henne, 732-407-5938
Freelancers CO-OP of NJ Will Benefit Individuals & Small Businesses
(NEW JERSEY) – Yesterday, New Jersey was announced as one of eight states awarded a Consumer Oriented and Operated Plans (CO-OP) loan. These funds will help the Freelancers CO-OP of New Jersey start a private non-profit, consumer-governed health insurance company. Created by the Affordable Care Act, CO-OPs provide more health care choices for both individuals and small businesses.
The Affordable Care Act has an express goal of funding one CO-OP in each of the fifty states. The funding for loans is part of $3.8 billion included in federal health care reform to create non-profit insurers. Beginning in 2014, millions of uninsured people will now be able to purchase private coverage in new state markets. CO-OPs will compete in state-run insurance exchanges, and tax-credit subsidies will help customers with the cost. These new and innovative health-insurers will be run by their members and are designed to offer coverage to both individuals and small businesses.
"This CO-OP loan announcement is just another accomplishment in a long list of ways the Affordable Care Act is providing access to high-quality, affordable healthcare and wellness benefits to all Americans," said Joshua Henne, New Jersey spokesman for Know Your Care. "The Freelancers CO-OP of New Jersey will be a terrific resource for countless families and small businesses throughout the state."
Freelancers CO-OP of New Jersey was awarded a $107,213,300
loan to provide health insurance coverage statewide. This particular non-profit health insurer is sponsored by Freelancers Union - a union of independent workers partnering with providers with an innovative and effective Patient-Centered Medical Home model.
The loans will help fund CO-OP start-up costs. The money will also assist these nonprofit health insurers in meeting minimum reserve requirements to pay claims. All loans must be repaid with interest and loans will only be made to private, nonprofit entities that show a high probability of becoming financially viable. The loans for start-up costs must be repaid within 5 years, while solvency loans must be repaid in 15 years.
To-date seven nonprofits offering coverage in eight states have already been awarded $638.7 million. In addition to the Freelancers CO-OP of New Jersey, the other states benefitting include Iowa, Montana, Nebraska, New Mexico, New York, Oregon and Wisconsin. All will begin operation starting January 1st, 2014.
For more information on this announcement, please visit: http://www.healthcare.gov/news/factsheets/2012/02/coops02212012a.html
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The Affordable Care Act was signed into law by President Barack Obama on March 23rd,, 2010. Over the past two years, it has been a tremendous help to millions of Americans as this real reform lowers costs and guarantees more choice for consumers. As additional provisions are implemented, ACA will continue to benefit millions more people.
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