A new non-profit health insurer in Kentucky has received a $58.8 million loan from the Centers for Medicare and Medicaid Services (CMS).
The Kentucky Health Care Cooperative (KYHC) is a new type of private health insurer created under the Affordable Care Act. Called a “Consumer Operated and Oriented Plan” (CO-OP), the program is intended to be run by its own customers and offer health insurance through the newly-created State Exchanges.
CMS awarded KYHC a loan after the entity was able to demonstrate a high probability of financial viability.
So far, CMS has awarded nearly $1.4 billion in startup loans to CO-OPs. Of the 18 awardees, KYHC’s $58.8 million award ranked 14th in terms of size. The largest award so far has gone to the Freelancers Health Service Corporation in New York in the amount of $174.4 million.
KYHC is sponsored by a coalition of business leaders, providers, and community organizations. It plans to participate in Kentucky’s Health Insurance Exchange, which Gov. Steve Beshear created in July via Executive Order. KYHC will also participate in the individual and small group marketplace.
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