VT Health CO-OP's Fate Could be Decided Soon

Sep 9, 2013

A Vermont consumer health insurance cooperative launched amid fanfare 15 months ago is expected to hear by the end of this month whether a federal agency will demand repayment of nearly $34 million in loans.

Vermont Health C0-OP CEO Christine Oliver tells The Associated Press that If the Centers for Medicare and Medicaid Services were to call in those loans, that would be fatal to the hopes that the co-op would be a new entrant in the Vermont health insurance market.

The Vermont Department of Financial Regulation in May rejected the co-op's request for a new license, saying its rates were too high to be competitive. The department also questioned its governance structure. The co-op responded by revising its business plan and asking for reconsideration — a request that's still pending.

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