8.03.2011

Loans for Health Insurance

Federal officials released loans in the amount of $3.8 billion dollars to aid nonprofits in providing more feasible health insurance, which would be sold through exchanges and to small businesses. The exchanges are set to launch in 2014, so the government hopes to motivate nonprofit cooperatives to expedite the operation of their business so that they will be functioning by that time. The goal is to be able to provide cheaper insurance than what private companies are able to offer.

Any profits that are made through this process are to be reinvested into the insurance plan. By reinvesting these funds, members' premiums will be lowered and the benefits or quality of the insurance would improve.

There are those who don't agree with having the co-ops set up as a nonprofit. Others feel as though no incentives exist to get the process started. The year 2014 will reveal who is correct in theory if anyone is correct at all.


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