Consumer Operated and Oriented Plan [CO-OP] Program

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We estimate that 51 applicants will be awarded loans under the CO-OP program joint Start-up and Solvency Loans or only Solvency Loans because section 1322 of the Affordable Care Act envisions the creation of at least one viable CO-OP in every State and the District of Columbia. These numbers are estimates. The actual number of awards will vary according to the number of applications and the size of awards. The estimated number of awards reflects the statutory goal of the CO-OP program to establish a CO-OP in each State. It should be noted, however, that the statute allows CMS to fund more than one eligible prospective CO-OP qualified nonprofit health insurance issuer in any State if the funding is sufficient to do so. However, CMS is unlikely to fund CO-OPs that will directly compete with each other for the same target market if actuarial analysis indicates that these CO-OPs would be less likely to repay loans under those circumstances. If there is no applicant from a State, CMS may award loans to encourage the expansion of a eligible prospective CO-OP qualified nonprofit health insurance issuer from another State to that State or take other steps to encourage the development of a CO-OP in a State. Additionally, an applicant may apply for loans to establish a CO-OP in more than one State. For the purposes of this Funding Opportunity Announcement (FOA), a “State” means each of the 50 States and the District of Columbia. All awards (new and continuation) that are issued under this announcement are subject to the availability of funds as well as satisfactory progress. In the absence of funding, CMS is under no obligation to make awards under this announcement.

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