Qualchoice Creating Not-For-Profit HMO

The Arkansas Insurance Department has granted a certificate of authority to Qualchoice Advantage to operate a new not-for-profit health maintenance organization.

Mike Stock, CEO of QualChoice Holdings, said in an interview that the state department granted the license April 30. He said he could not under federal law offer many specifics about the HMO until it is federally approved.

He did say the HMO would sell “different products than we are currently selling in our existing HMO,” its QCA Health Plan. A not-for-profit filing would enable the company to avoid federal income taxes as well as some of the taxes involved with the Affordable Care Act, otherwise known as Obamacare.

Stock said the product is already being sold in other states where Qualchoice owner Catholic Health Initiatives does business, and similar products in new states are being developed. CHI has insurance operations in Washington, Nebraska, Kentucky, Ohio and Tennessee.

As part of the new nonprofit, the company also will develop a national transaction center to offer administrative support for insurance operations in other markets.

Stock said the company is hoping to offer the plan in the fall with effective membership beginning Jan. 1. He said the company was planning to add 10-20 jobs initially with more coming as volume grows. It will look to recruit employees in the next 30-60 days.

Last year, Prominence Health Plan Services, Inc. (then known as Collab Health Plan Services, Inc.), a wholly owned subsidiary of Catholic Health Initiatives (CHI), acquired control of QualChoice Holdings, Inc., through a stock-purchase agreement. Little Rock-based Qualchoice is the parent company of QCA Health Plan, Inc., and QualChoice Life and Health Insurance Company, Inc.

The company said in a press release that it had added 100 jobs in Arkansas since Qualchoice was acquired by CHI. Stock said the company currently employs nearly 250 in Arkansas.