Join Early Retirement Today
Thread Tools Search this Thread Display Modes
ACA plan from a CO-OP?
Old 12-07-2014, 04:19 PM   #1
Confused about dryer sheets
Join Date: Dec 2010
Posts: 3
ACA plan from a CO-OP?

Our old BCBS plan in Illinois is being phased out, so we're looking to get a new ACA compliant plan for 2015. One of the companies offering policies in Illinois is called "Land of Lincoln", which is a start-up business formed in 2013 as a CO-OP (Consumer Operated and Oriented Plan), using Federal loans to get them started. Their policies are very attractive based on price, coverage and doctor networks. They look like a good deal. So, we're interested in switching to them.

My big concern is what happens if they aren't financially viable?

I've read that they signed up way less than planned for 2014 (overpriced their premiums), and have dropped their premiums for 2015, hoping to gain market share. But, they are still very small in the market. What happens if they can't stay viable? What if they have a few huge claims, and can't support the business model? Or can't pay back their federal loans? Will I be stuck without insurance? Will I be liable for unpaid bills? Can I switch to another company mid-year?

I've asked them these questions (via their phone hotline), and am getting the runaround. Anyone else buying insurance from one of these CO-OPs? The ACA wants these CO-OPS to be the new way to manage costs going forward. But do we have to assume the risks? Thanks for your thoughts.

tennistime is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-07-2014, 08:40 PM   #2
Recycles dryer sheets
robertf57's Avatar
Join Date: Jun 2014
Posts: 324
There are protections for insurers built into the ACA for medical losses greater than planned, so I think this is not a major concern for patients at this time. Whether they can pay back their loans is also not a problem currently as my understanding is those loans aren't due yet. I would choose the network and coverage that suited my needs right now. In yearsr to come, these issues may become more problematic.
robertf57 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
How long can you keep a ACA plan after moving? Fermion Health and Early Retirement 2 11-24-2014 03:11 PM
Is Retiree HC Ins an "Employer Plan" under ACA? GalaxyBoy Health and Early Retirement 1 07-16-2014 03:36 PM
Can You Recommend an ACA Health Insurance Plan for Central New Jersey? nico08 Health and Early Retirement 10 07-16-2014 02:49 PM
ACA: "Recommended Health Plan Groups" (Family versus 2 Individual Policies) bamsphd Health and Early Retirement 9 12-11-2013 08:35 AM
Got through! ... my ACA plan choices racy Health and Early Retirement 1 10-25-2013 08:57 AM


All times are GMT -6. The time now is 11:01 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.