After a tough first year, Arizona’s member-operated health insurance co-op is attracting droves of new members.

According to figures provided by the co-op, Meritus, the nonprofit insurer now covers 56,000 Arizonans, 28 percent of the total covered by plans on the federal exchange created by the Patient Protection and Affordable Care Act in Arizona.

A number of co-ops in different states were created in the wake of the PPACA, financed by federal loans. The results have been mixed. While a co-op created in New York enrolled fives times its target membership, most of the new insurers fell short of their projections. As a result, some of them simply didn't have enough money to cover claims.

Meritus, according to a report last year by the Government Accountability Office, had only enrolled 4 percent of its intended membership––869 people––by the end of 2014. The GOA attributed the poor performance to high premiums. Although the company disputed those figures, saying it had enrolled 3,500 members, it conceded that it had fallen far short of its enrollment goal.

Meritus vice president Veronica Piotrowski told the Associated Press that the company is doing much better now that more people know about its unique model, which was hamstrung by uncertainty over the bumpy implementation of the PPACA last year. The company has also lowered prices on many of its plans.

“We really felt that as we progressed that we had a product that was more widely known, Meritus was becoming more familiar to the community,” she said. “And we have attractive pricing. That was also part of that recipe that really made us an attractive and valuable selection for the community.”

Instant Insights /

Arizona health insurance co-op enrollment skyrockets

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