Feds say jig's up on Vt. Health CO-OP - WCAX.COM Local Vermont News, Weather and Sports-

Feds say jig's up on Vt. Health CO-OP

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MONTPELIER, Vt. (AP) - It appears the Vermont Health CO-OP has met its demise, with the federal agency that provided start-up financing calling in its loans.

The CO-OP - which stands for "consumer operated and oriented plan," was launched amid fanfare 15 months ago and was expected to be one of the market players as the state launches its Vermont Health Connect health insurance exchange next month.

But state regulators denied it a license in May, saying its rates would not be competitive and raising questions about its governance.

Now The Associated Press has learned that on Monday, the Centers for Medicare and Medicaid Services wrote to the CO-OP to say it was time to wrap up operations and repay its loans. CMS so far had disbursed more than $14 million to the CO-OP.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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