Tuesday, December 18, 2012

Introduction to PPACA Co-Ops

Introduction to PPACA Co-Ops

Good morning.  I will discuss interviews again in my next post.  For now, I wanted to touch on the PPACA Co-Ops.  This is new to me.  I just came across an article referencing the Co-Ops that will be created by the Patient Protection Affordability and Care Act (PPACA).  I had not seen discussion of this yet, so I looked into it further.  There are links at the bottom to some of the articles I reviewed.  Here is what I found. 

Section 1322 of the PPACA says:
(1) IN GENERAL.—The Secretary shall establish a program to carry out the purposes of this section to be known as the Consumer Operated and Oriented Plan (CO–OP) program.
(2) PURPOSE.—It is the purpose of the CO–OP program to foster the creation of qualified nonprofit health insurance issuers to offer qualified health plans in the individual and small group markets in the States in which the issuers are licensed to offer such plans.

These Co-Ops should act similar to Credit Unions.  They will be non-profit organizations, in that any profits will need to be reinvested.  This should help lower costs and allow them to offer better services.  The idea behind these Co-Ops is that, they should increase competition on the healthcare exchanges, and since they will be a non-profit, in theory, there may be more incentives to focus on the patients.  The Co-Ops should be operational by 01/01/2014.  There is $3.8 billion that has been granted and loaned to start-ups creating these Co-Ops. 

This is really interesting stuff.  These regulations will affect HR professionals, business professional, and all Americans in a variety of ways.  I will have come back to discuss these Co-Ops more later.

And remember all of you Human Resources professionals:  Be Human... Be a Resource...  Be a Resource for Humans.


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