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The Boston Globe


Small-business health co-op will slash rates

Thousands of small businesses will be offered discounts of at least 20 percent on health insurance rates under a new group purchasing cooperative, formed by the Retailers Association of Massachusetts, that will begin enrolling members this week.

The co-op is the first permitted to do business under a 2010 Massachusetts law that allows small employers to band together in large groups and negotiate for better-priced health coverage. On Friday, the state Division of Insurance authorized it to offer about 4,000 small businesses a half-dozen health plans that are far less expensive than what the businesses had been paying on their own.

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