Health Insurance partnerhip gets funding

Associated Press



MILWAUKEE - A statewide health insurance cooperative plan is expected to receive $2 million in federal money to kick it off.

President Bush is expected to sign the appropriation bill giving the Wisconsin Federation of Cooperatives the money to help underwrite the insurance risk of farmers and other co-op members.

Many of the anticipated members of the regional health care cooperative have not had health insurance for years and insurers consider them high risks.

The fund will serve as a reserve pool of money to pay medical costs that total $30,000 to $100,000 a person. Without the reserve, insurers would have to pick up the entire expense of such high-cost claims and pass on the costs to members with higher premiums.

Bill Oemichen, the federation's president and CEO, said he expects the first regional health care cooperative, which will be mostly for farmers, to operate in northwestern Wisconsin by early summer.

The next regional co-op is planned for north-central Wisconsin.

Eventually the group hopes to have five regional health care cooperatives throughout the state for small businesses, self-employed people and employees of nonprofit organizations.

Oemichen said Sen. Herb Kohl, D-Wis., and Congressmen Dave Obey, D-Wis., and Mark Green, R-Wis., helped get the appropriation included in a congressional bill.

"We want to ensure that our family farms in Wisconsin succeed, and that they have the tools they need to compete. This will give them some clout in getting health insurance," Green said.

The Legislature approved creating five regional health care purchasing alliances last year, but did not provide any funding.