By providing grants and loans to qualified applicants, The Patient Protection and Affordable Care Act paves the way for the creation of new nonprofit insurance providers, known as CO-OPs. But federal budget cuts have put that funding in jeopardy.
According to information received by members of the Consumer Operated and Oriented Plan Program (CO-OP) Advisory Board, “the Administration supports the CO-OP program, it will go forward as planned with somewhat reduced funding.”
Reportedly, the budget includes cuts in the Consumer Operated and Oriented Plan Program. According to many reports, the CO-OP program is one the Administration supports and the cuts would not have been made in better circumstances, but Washington policy makers now recognize the importance of “living within our means”
On March 14, 2011, members of the Advisory Board, including NovaRest’s Donna Novak, came up with a list of recommendations to help foster the development of new CO-OPs. Novak chaired the Finance subcommittee which specifically addressed financial challenges new CO-OPs will face. “It is unclear to me at this point, what funding is going to be available for the CO-OP program, if any,” said Novak.
Members of the Advisory Board are still scheduled to meet via teleconference on April 15th, 2011. The Committee will vote on whether to approve the report as its recommendations concerning the grant and loan award strategy for CO–OPs.