TRENTON – New Jersey has received a $107 million loan to help start up a non-profit health insurance company run by consumers.
Freelancers Consumer Oriented and Operated Plans (CO-OP) of New Jersey will provide health insurance coverage statewide to both individuals and businesses. The non-profit is sponsored by Freelancers Union – a union of independent workers partnering with providers with an innovative and effective Patient-Centered Medical Home model. The money, in addition to helping with start-up costs, will help it pay claims.
The funding was made possible by the Affordable Care Act, passed by President Obama in March 2010. New Jersey is one of eight states to receive such loans to help start non-profit insurance companies.
“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, in a statement. “The Freelancers CO-OP of New Jersey will be a terrific resource for countless families and small businesses throughout the state.”
CO-OPs will compete in state-run insurance exchanges, providing tax-credit subsidies to help customers pay the costs, and will be available to both individuals and businesses.