Michigan to get new health insurance cooperative

EAST LANSING (AP) -- A new statewide health insurance cooperative aims to enroll 37,000 low-income and small-business customers by the end of its first year.

The Lansing State Journal reports that Consumers Mutual Insurance of Michigan is funded with a $72 million federal loan. It's designed to be an alternative offering on the health insurance marketplace called for by the federal health care law.

The East Lansing-based nonprofit is awaiting final licensure from the state's Department of Insurance and Financial Services. Its leaders are negotiating contracts with hospitals and health care providers to form a network stretching across the state.

Officials say the cooperative also is aimed at moderate income residents. It plans to begin selling insurance when open enrollment starts Oct. 1.

The policies would take effect in January.

Published: Tue, May 21, 2013