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CO-OP (Consumer Operated and Oriented Plan) Program - FAQs

What is the CO-OP grant opportunity?

The Consumer Operated and Oriented Plan (CO-OP) opportunity is a federal funding initiative created under Section 1322 of the Affordable Care Act (ACA), as later amended by the Department of Defense and Full Year Continuing Appropriations Act, 2011. Its purpose was to help launch new, consumer-governed, private, nonprofit health insurance issuers known as CO-OPs.

What is the main purpose of the CO-OP program?

The program was designed to increase health insurance choices for individuals and small businesses, strengthen accountability to members (because plans are governed by consumers rather than shareholders), and apply competitive pressure in insurance markets, particularly within the Affordable Insurance Exchanges established under ACA sections 1311 and 1321.

Is this funding a grant or a loan?

Although often referred to as a grant opportunity, the program is structured around loans intended to capitalize eligible start-up CO-OP insurers. The loans were meant to help CO-OPs meet early operational and regulatory requirements and begin offering coverage.

How much funding was set aside for the CO-OP program?

Congress set aside 3.8 billion dollars in budget authority for this program.

How many CO-OP awards were expected?

The opportunity projected an estimated 51 awards.

Was the program intended to fund a CO-OP in every state?

Yes. The program goal explicitly included supporting at least one CO-OP in every state.

Could more than one CO-OP be funded in a state?

Yes. The program allowed more than one CO-OP per state to be funded, provided that sufficient funding remained to ensure at least one viable CO-OP per state overall.

What kinds of organizations were CO-OPs supposed to be?

CO-OPs were intended to be new, private, nonprofit health insurance issuers that are consumer-governed. The summary eligibility category is listed as "Others," with additional eligibility details expected to be provided in the full funding opportunity announcement.

What policy goals did the opportunity emphasize beyond creating new insurers?

In addition to creating new insurance carriers, the opportunity emphasized encouraging coordinated and efficient health care delivery. Applicants were encouraged to propose integrated models of care that better connect financing with care management and provider coordination, with the aim of improving quality and potentially lowering costs.

What types of applicants were prioritized?

The Secretary indicated priorities for applicants that planned to offer CO-OP qualified health plans on a statewide basis (rather than only in a region), that proposed integrated care models, and that could demonstrate significant private support.

What does it mean to offer CO-OP qualified health plans on a statewide basis?

Based on the notice, statewide offering means proposing to offer CO-OP qualified health plans across the entire state rather than limiting coverage to one region or a smaller geographic area.

What does the opportunity mean by "integrated models of care"?

The notice describes integrated models of care as approaches that better connect financing with care management and provider coordination. The intent was to support care models that are more coordinated and efficient.

Why did the opportunity emphasize private support?

The notice indicates that applicants demonstrating significant private support would be prioritized, signaling interest in proposals with non-federal backing that could strengthen sustainability and credibility during the start-up period.

Which federal agency issued this opportunity?

The opportunity was issued by CMS (Consumer Information and Insurance Oversight).

What is the Funding Opportunity Number (FON) for this program?

The Funding Opportunity Number listed is OO-COO-11-001.

What is the CFDA number for the CO-OP Program?

The CFDA listing provided is 93.545 (Consumer Operated and Oriented Plan (CO-OP) Program).

How is the opportunity categorized?

It is categorized as a health-related funding activity with an "Other" opportunity and instrument type.

When was the opportunity posted?

The posting date shown is July 28, 2011.

How were applications required to be submitted?

Applications were required to be submitted electronically through Grants.gov.

What was the initial application deadline?

The solicitation set an initial due date of October 17, 2011.

Were there additional deadlines after the initial due date?

Yes. The notice indicates quarterly deadlines through the end of 2012, with updated times and dates reflected in the notice (including quarterly due dates in early 2012, mid-2012, and late 2012).

Was cost-sharing or matching required?

No. The listing shows no cost-sharing or matching requirement.

Was there a minimum or maximum award amount listed?

No. The summary fields do not specify an award floor or ceiling. The description suggests loan amounts were determined case-by-case based on the program's financing approach and applicant needs rather than a single fixed range.

Where should applicants look for detailed eligibility requirements?

The summary indicates eligibility as "Others" and notes that additional details are deferred to the full funding opportunity announcement, which is common when statutory and program-specific requirements apply.

Who were the CMS points of contact listed for this opportunity?

The announcement lists CMS points of contact for access issues and applicant questions, including project officers Anne Bollinger and Ilana Cohen. It also provides phone numbers and an email address for Anne Bollinger.