State announces health insurance
nonprofit to apply for licensure to offer coverage as part of ACA
Land of Lincoln Health received a $160
federal loan to provide individuals and small business with
affordable, quality health plans
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[December 28, 2012]
CHICAGO -- The Illinois
Department of Insurance announced this week that Land of Lincoln
Health, a nonprofit consumer-operated and oriented plan, known as a
CO-OP, has received $160 million in federal loans and will now apply
for licensure as an Illinois mutual insurer to offer health
insurance to individuals and small business owners. Upon receiving
state license approval, Land of Lincoln Health will be able to offer
health coverage through the Illinois benefits health exchange.
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"We continue our efforts to create a health benefits exchange under the
Affordable Care Act. This move to allow health coverage through a CO-OP marks
another positive step to provide the people of Illinois more choices for quality
health care," said Gov. Pat Quinn. Land of Lincoln Health, incorporated by the
Metropolitan Chicago Healthcare Council, is currently the first and only such
plan in Illinois to receive approval by the U.S. Department of Health and Human
Services. With an innovative, consumer-focused health care delivery model, Land
of Lincoln Health is designed to provide Illinois communities with insurance
options tailored to meet specific health and budgetary needs. "Our department
is pleased to help Illinois residents and small business owners gain access to
reliable, high-quality, low-cost health insurance coverage through access to CO-OPs,"
said DOI Director Andrew Boron. "We are pleased that Land of Lincoln is working
to make consumer protections within the health care insurance industry a
priority."
CO-OPs are member-based and required to use any revenues after expenses
toward improving the overall quality of health care coverage, including lowering
insurance premiums and enhancing health benefits. Individuals and small
businesses can purchase health insurance at affordable prices through CO-OPs --
both inside and outside of health care exchanges -- starting Jan. 1, 2014.
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The Patient Potection and Affordable Care Act allows for $3.8
billion in federal funding loans to assist states in establishing
CO-OPs with nonprofit, member-based health insurance organizations
in each state. Through its state-partnership exchange, Illinois is
the 24th state to receive federal approval and funding. More
information on the federal loan is available at:
http://www.healthcare.gov/
news/factsheets/2012/02/coops02212012a.html.
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The mission of the Illinois Department of Insurance is to protect
consumers by providing assistance and information, by efficiently
regulating the insurance industry's market behavior and financial
solvency, and by fostering a competitive insurance marketplace. The
department assists consumers with all insurance complaints,
including health, auto, life and homeowner.
[Text from
Illinois Department of
Insurance
file received from
the
Illinois Office of
Communication and Information]
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