By: Susan Sumrell
CMS announced on Friday, Sept 16, 2011, that it has posted the updated Funding Opportunity Announcement (FOA) on the Consumer Operated and Oriented Plans (CO-OP) Program. The ACA established the Consumer Operated and Oriented Plan (CO-OP) Program which provides loans to foster the creation of consumer-governed, private, non-profit health insurance issuers to offer qualified health plans in state-based insurance exchanges. In addition to improving consumer choice and plan accountability, the CO-OP Program seeks to promote integrated models of care and enhance competition in the Exchanges.
The updated FOA can be found at www.grants.gov (search for CFDA #93.545). The amended FOA includes this additional language on page 38:
“The costs of preparing the
feasibility study and business plan required under sections IV.B.5 and IV.B.6
of this FOA to be submitted with the application will be considered eligible
costs for Start-Up Loans up to a total amount of $100,000. Loans for
these costs will only be provided to applicants who are awarded Start-Up Loans.
For applicants approved to operate in more than one State, an additional
$50,000 attributable to the cost of preparing feasibility studies and business
plans per additional State in which the applicant is approved to operate will
be considered eligible costs for Start-Up Loans for up to four additional
States amounting to a maximum of $300,000.”
For more on the CO-OP Program, see our earlier blog on the initial announcement of the FOA.