The Problem with Cooperatives

Why do we need cooperatives instead of a “public option”, intrastate insurance plans, or simply the status Quo?  Why should the government choose to be in the insurance industry at all?  These are major questions that are about to be on the table in full view when Senator Max Baucus and the “gang of 6” releases their version of the healthcare bill, and this bill has a chance to pass.

The public option has been written about in this forum, and it remains a poor choice to decrease healthcare costs, and is a budget buster for sure.  Intrastate Insurance plans that could be purchased by anyone anywhere are a great tool to reduce costs.  Yet, the plan that seems to be shaping up is the idea of nonprofit privately or publicly ran cooperatives to compete with the big insurance companies.

However, there is one MAJOR problem with this idea which is championed by the “gang of 6”, or at least so it seems as of today.  The problem is that many states already have nonprofit insurance companies, e.g., Blue Cross Blue Shield in many states.  So, what good would the creation of another non-profit do?  I don’t know, open up competition between all the current insurance companies and let new ones enter the market place.  That is the way to create competition.

2 Responses to “The Problem with Cooperatives”

  1. mediame Says:

    How come you dont have your site viewable in wap format? cant view anything in my iPad.

  2. u4fifa Says:

    nice going!

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