Wellpoint buys Amerigroup

[FormLetter]

You disagree with any tactic that isn't an act of justice?

[JMO]

Originally Posted by FormLetter

You disagree with any tactic that isn't an act of justice?

I disagree with tactics that are targeted unjustly.

[sweetiepie]

The first billion has already been leant out. I suppose that means it's just a matter of time before we start working for one of these companies? Does anyone have any actual feelings about co-ops, I mean, besides gut politics?

[sixt8 berd]

How can a co-op compete with the big boys?

[plasticdog30]

Let's see.., the Government giving out interest free loans that don't have to be paid back unless the Co-op starts to make money. So, the Co-ops don't have to price for a profit (or contribution to surplus) and don't have to worry about RBC ratios, at least in the short terms. In markets where network size doesn't matter much, the Co-ops should have a fairly nice market advantage against the big boys.

On the other hand, getting all of the infostructure up and running in about 18 months or less seems pretty difficult for a startup that has no ties to existing insurance companies, so I see that as one area where these Co-ops will struggle.

[sixt8 berd]

I didn't think the loan payback was tied to the co-op making money. I thought it was a 5/15 time period for startup/solvency.

[FormLetter]

A co-op would have a tough time starting a network I think.

[plasticdog30]

There is a 5/15 timeframe for the loan payback, but if paying back the loans would affect the solvency of the company, they don't have to pay back the money.

[Brock]

Originally Posted by sixt8 berd

How can a co-op compete with the big boys?

Volume?

[sixt8 berd]

Originally Posted by Brock

Volume?

So you expect the CO-OP to have more business?