States with new member-owned CO-OP health plans as part of Obamacare have premiums that are more than 8 percent lower than states that don’t, a new study shows.
The Consumer Operated and Oriented Plans, with startup money loaned by the health care law, have zero or very few customers yet, given all the problems with the sign-up system. But they are going toe-to-toe with traditional insurers on the exchanges in 22 states, introducing new competition to insurance markets.And there’s some early evidence that they may be helping to lower costs.
CO-OPs aren’t the only new insurers operating on the exchanges. Some markets, including New York, attracted other new players, too. And the whole exchange system is designed to spur competition because plans are battling head-to-head for customers who will be able to compare apples-to-apples offerings — assuming the exchanges are able to work through their early technology woes.
See the full story at Politico.com