MILWAUKEE (WTAQ) - A Milwaukee community organizing coalition is getting $56 million in federal loans to start a non-profit health insurance co-op.
Common Ground is one of seven groups to be awarded $639 million in loans Tuesday.
The federal health care reform law is helping fund one non-profit co-op in each state compete with existing insurers -- with the goals of cutting prices and giving people more choices. The loans will cover start-up costs, and they'll help the co-ops meet state requirements for building up reserves.
Common Ground plans to start operating in 11 southeast Wisconsin counties, with a goal of expanding statewide within 5 years. It will try to insure 10,000 people in 2014, and 20,000 by 2015.
The government says the Common Ground loan will stay in place even if the U.S. Supreme Court strikes down the health reform law this summer -- or if Congress ever repeals it.
Farmers' Health Co-op director Cathy Mahaffey is in the interim CEO for the new group. Longtime Milwaukee and Marshfield health care executive Bob De Vita is the interim chief operating officer.
