Call or Email Us Today for More Information |  631.963.6020 |  info@nysmallgroupplans.com
Small Business Health Insurance Simplified. The best small business health insurance for every
 budget, all in one place..
 

The Affordable Care Act (Obamacare) and Health Care Cooperatives,

are they right for you?

 

Healthcare costs in the New York-Northern New Jersey area increased 5.2 percent in the past year, the most rapid rise in consumer goods behind the cost of fuel. The rising costs have made health insurance increasingly unaffordable for individuals who have to buy their own. This poses a threat to consumer spending, which is helping drive the nation’s economic recovery.

Since the introduction of the President’s health reform bill , there may be potential solution: health insurance cooperatives.  $3.4 billion dollars has been set aside  for co-ops in the new health care law. $174 million in loans was recently given to the Freelancers Health Service Corp., New York’s first health insurance co-op, now known as Health Republic.

As of September 2011, there were 2.9 million New Yorkers without health insurance, a number that has increased much faster in New York than in the U.S. as a whole, according to the Fiscal Policy Institute.

The purpose of health insurance co-ops is to introduce more competition to the market and help drive down premiums.They differ from larger, corporate insurance companies because cooperatives are  nonprofits, which mean any revenue earned will be put back into the co-op. Also, they are owned and run by an elected board of co-op members, rather than investors.

Consumers are more likely to trust the co-op model versus corporate insurance companies.   As a result of inflation, employers and some consumers are having a revived interest in narrow networks. In a narrow network, the co-op promises specific doctors and hospitals a steady flow of business from its members. This enables the co-ops to negotiate for medical services. It’s hard for existing insurance companies to turn establish a new policy, but co-ops can start with a blank sheet of paper and aren’t burdened by longstanding contracts with hospitals and doctors. Co-ops can pay a doctor more money if he or she spends more time with patients. Or, co-ops can redirect reimbursements toward primary care instead of high level expensive testing.  Health Republic offers health insurance to individuals and families, as well as small businesses.  Health Republic is a tax-exempt corporation, licensed under Article 43 of the New York Insurance Law. 

The federal law defines a qualified nonprofit health insurance issuer as an organization meeting the following requirements:

 

Substantially all of its activities must consist of the issuance of quality health plans in the individual and small group markets in each state in which it is licensed to issue such plans.

It must not be sponsored by a state, county, or local government, or any government instrumentality. Its governing documents incorporate ethics and conflict of interest standards protecting against insurance industry involvement and interference.

 

•              Governance of the organization must be subject to a majority vote of its members.

•              It must operate with a strong consumer focus, including timeliness, responsiveness, and accountability to members in accordance with regulations to be promulgated by the Secretary of HHS.

•              Any profits made would be required to be used to lower premiums, improve benefits, or other programs intended to improve the quality of health care delivered to members.

•              In New York, those with Health Republic Insurance do not have to pay co-payments when seeing their primary care doctor and the deductible doesn't apply to ambulatory care services.

•              Health Republic also does not require referrals, this will enable you to see any provider in their network

 

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Custom NY/NJ Quotes
Life Insurance
Instant quotes form the top rated Companies. Compare Now.
Testimonials
Serving the insurance needs of small businesses and individuals since 1998.
Join Our Newsletter
Stay in touch with the latest events, news and offers that we have.
Insurafy for California small
business health Insurance







Get a Quote
From Our Blog From Our Customers
Read More Read More
Stay In Touch With Us Helpful Site Links Read the News
Sign up now to receive new and updates Stay up-to-date with the latest industry, community and agency news through our newscenter. We also provide handy hints on how to save on your insurance.

Read More
We have the expertise to find you the right coverage at the right price 
© All rights reserved.
Powered by Insurance Website Builder