Health Insurance Co-op Program Ready to Take Effect

The first health insurance cooperative in the state is set to be introduced this month. Aimed initially at farm families and small businesses, the member-owned regional health care co-ops eventually could serve the self-employed, employees of nonprofit groups, early retirees and others hard-pressed to pay premiums and deductibles typical of non-group health plans by bring smaller groups together into a large group with strong bargaining power.

The cooperative is the first to be organized under legislation signed by Governor Jim Doyle in December 2003 authorizing creation of five regional health care purchasing alliances in the state.



Last month, Doyle signed another bill into law that will allow as many heath care co-ops to be organized as needed to benefit more people and increase competition so that consumers have more choices.



Meanwhile, the Wisconsin Federation of Cooperatives is organizing a health care co-op in northwestern Wisconsin, in the Eau Claire area, aimed at providing farmers and small rural businesses affordable group health insurance plans.