The telephones at Health Republic Insurance of New York are ringing off the hook, according to the company's chief.

You've never heard of them? That may be because the company has been offering products for almost three weeks and has no advertising budget.

But consumers shopping for health insurance through NY State of Health — the state-run online market that launched Oct. 1 — learn quickly that the New York City-based company is offering the lowest rates for individual or small group health insurance in the 32 counties in which it operates, including the Capital Region.

That appears to be driving interest in the new organization.

"We are far exceeding the call volume and level of interest we anticipated," said Debra Friedman, Health Republic's president and CEO.

The nonprofit insurance company was created through the federal Affordable Care Act, known as Obamacare. It is one of 23 "co-ops" — consumer operated and oriented plans — set up around the country to create competition to long-established insurers.

Health Republic received a federal startup loan of $23 million, and has approval for another $150 million over the next five years, so it can establish the reserves required by insurance regulators. The taxpayer funds may not be used for advertising, though the co-op is reaching out to potential customers through community locations, Friedman said.

Its insurance plans are offered primarily through the online market, or exchange, which was established to help individuals and small businesses meet the federal law's requirement to get insurance coverage or pay a penalty.

The co-op's health insurance plans include those labeled "essential care," which cover a set of benefits established by the government that is the same for every insurer. In the Albany market, Health Republic's monthly rates for a mid-level "silver" plan are just under $300 for a single person. Other insurers' rates are as high as $525 per month. (The exchange classifies insurance plans by grades of metal, from bronze to platinum.) Its "primary select" plans are available at higher monthly premium rates, but offer different benefits and lower deductibles and co-pays.

The new company seeks to keep its rates lower by keeping expenses in check, Friedman said.

"As a co-op, we operate with very low profit margins and reinvest every dollar back into the benefits and the services offered by Health Republic Insurance," Friedman said. "We are lean and have very low overhead costs."

The co-op structure of Health Republic means that members make up over half the board and help direct the company.

Officials at competing insurance companies cautioned that consumers should look at more than just rates when buying insurance. Consumer experts around the country have given the same advice as the health exchanges rolled out this month. They suggest shoppers look at such factors as doctor networks, quality ratings and deductibles required before choosing an insurance company. Those comparisons are available through the NY State of Health website. Health Republic has no quality rating, because it is new.

"When shopping for coverage, it is very important for consumers to look beyond the price tag and get a glimpse at what is "behind the (insurance) card,'" said Brian O'Grady, vice president of Blue Shield of Northeastern New York.

"It's very important that they look at networks," said Robert Hinckley, senior vice president at Capital District Physicians Health Plan. "We have the most robust network in the area. We will have your doctor in our network."

Health Republic did not create its network from scratch, Friedman said. It subcontracted with New York City-based MagnaCare. CDPHP also uses MagnaCare to contract with doctors and other providers outside the Capital Region, but maintains its own comprehensive network in this area, Hinckley said.

chughes@timesunion.com • 518-454-5417 • @hughesclaire