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HELENA- Montanans will soon have a new health insurance option: the Montana Health Cooperative, which hopes to give Blue Cross-Blue Shield of Montana a run for its money. An estimated 60% of Montanans with major medical insurance have policies through Blue Cross.

"Too many Montanans lack options now for health coverage. Once again co-ops are arriving to provide a solution," MHC spokesman John Morrison said.

A coalition of small businesses and community leaders have formed the Montana Health Cooperative, and now the U.S. Department of Health & Human Services is loaning the group $58 million to get business started.

"Basically we've been given approximately a two year runway to build a new insurance company. There are many things that have to be done with that: claims processing, provider networks, wellness programs, disease management," Eric Schindler of the Montana School Services Foundation noted.

The loan was awarded through the federal Affordable Care Act with the goal of creating competition and therefore driving down the cost of healthcare.

Critics of the federal health reform law say the implementation for cooperatives isn't transparent.

U.S. Representative Denny Rehberg (R-MT) tried to defund the program when he presented his budget in 2010.

"I don't think we ought to be using the hard-working taxpayers' own money to subsidize new government-approved health insurance companies," Rehberg said.

Blue Cross reports it's been anticipating the creation of the new co-op and issued the following statement on Tuesday: "As the leader in providing high quality, affordable health care solutions to Montanans for over 70 years we are well poised to continue to provide the best services and products to all Montanans."

The Montana Health Cooperative reports it will be ready to issue policies on and off the health insurance exchange by 2014.