The ACA has created 24 insurance-company non-profit startups, all ready to compete with the big name insurers. Not interested in making profits, these co-op’s are only interested in keeping patients healthy and insuring those who have been rejected by the old system. Although they have borrowed all their capital, they cannot use their money on advertising and instead are relying on community groups, clinics and hospitals to get the word out.
The most important challenge these startups face is getting low hospital prices and they can’t promise high patient volume-the way their competitors do. Therefore, the co-ops are forced to rent provider networks from their competitors, hindering the ability to negotiate. But co-ops’ status as non-profits and their promise to pay bills on time is helping to build relationships with hospitals.
Hoping to set a new precedent for the way healthcare is delivered in America, these co-ops are scheduled to open October 1st.
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