State Forms Private Insurance Cooperatives
The Retailers Association of Massachusetts and the Massachusetts Association of Chamber of Commerce Executives will be the first two private health insurance cooperatives allowed by the state.
As part of economic development legislation passed in 2010, the state is allowed to certify up to six group purchasing associations, which allow small businesses to enter into collaborative purchasing agreements with larger organizations.
The state's Division of Insurance announced that the retailers and chamber executive groups will be the first two cooperatives. There are 45 organizations that can work with these two groups, a list of which can be seen here.
The state hopes the cooperatives will begin offering products by the spring or summer.
"Cooperatives are a key part of the Patrick-Murray administration's efforts to lower health care costs for small businesses and working families," said Insurance Commissioner Joseph G. Murphy. "Small businesses will be gathered under one umbrella and the approved cooperatives will obtain combined market power that can lead to lower rates for cooperative members."
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