The federal government will give a $160 million loan to a hospital trade organization to establish a health insurance co-op to compete against major insurance carriers in the state.
The CMS has chosen a plan sponsored by the Metropolitan Chicago Healthcare Council, an organization representing 150 hospitals and healthcare organizations in the Chicago area. MCHC will establish a member-owned organization to offer healthcare plans on the Illinois health insurance exchange, an online marketplace that lets consumers choose between health plans. Both the co-ops and the exchanges are critical components of the landmark Patient Protection and Affordable Care Act.
The plan, known as Land of Lincoln Health Inc. Co-op, calls for initially covering 20,000 people statewide, growing to 100,000 within five years.