Milliman-Health Insurance CO-OPs: Challenges and Opportunities
This Milliman brief discusses the organizations that are most likely to create CO-OPs, the challenges to developing CO-OPs, and areas where CO-OPs can help improve quality and reduce costs. The paper notes challenges such as, high start-up costs and a lack of data to establish initial premium rates but points out the possibility of using purchasing arrangements among noncompeting CO-OPs to create economies of scale that would increase the competitiveness of CO-OPs in the insurance marketplace.
