Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

What Is a Health Care Co-Op, Anyway?

Member-owned plans would lack government leverage

By Matt Cantor,  Newser Staff

Posted Aug 18, 2009 9:37 AM CDT

(Newser) – The likelihood of there being a public health care option is fading—which has some in Congress pushing for an alternative: nonprofit health cooperatives, the Washington Post reports. Few details have emerged about how such plans would work; as it stands, their defining feature seems to be that they wouldn’t be government-run. While that might appeal to conservatives, it could also make it tough for the programs to survive, experts say.

Unlike the public option, member-owned cooperatives wouldn’t offer federally-mandated reimbursement rates for health care providers—a key savings aspect of the public plan. Others say the co-ops may struggle to gain the critical mass—estimated at 500,000 members—necessary to negotiate competitive rates with providers; the country's largest rural co-op currently has 186,000. But proponents say co-ops would act as insurers, negotiating directly with health care providers, and liken them to mutual life insurance companies, which are owned by policyholders and therefore somewhat immune to the pressures of Wall Street.

President Barack Obama meets with Senate Democrats to discuss health care, Tuesday, June 2, 2009.
President Barack Obama meets with Senate Democrats to discuss health care, Tuesday, June 2, 2009.   (AP Photo/Haraz N. Ghanbari)
In this Jan. 8, 2009 file photo, Senate Budget Committee Chairman Sen. Kent Conrad, D-ND, asks a question during a hearing on Capitol Hill in Washington.
In this Jan. 8, 2009 file photo, Senate Budget Committee Chairman Sen. Kent Conrad, D-ND, asks a question during a hearing on Capitol Hill in Washington.   (AP Photo/Lauren Victoria Burke, FILE)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 3 of 12 comments
OWLWOMANXXXX
Aug 19, 2009 2:24 AM CDT
we need to get rid of insurance companies.....period
OWLWOMANXXXX
Aug 19, 2009 2:23 AM CDT
I think I just puked
Fondue
Aug 18, 2009 9:17 AM CDT
Blue Cross Blue Shield used to be a co-op. Emphasis on "used to be a co-op".

More Newser Stories

Health Bill Snags on Opposition to Medicare Buy-In

Senate Deal Includes 'Triggered' Public Option

Reid Rolls Out Senate Health Bill for Sat. Showdown

Senate Health Bill Runs Into Abortion Divide

Public Option a Go: Reid


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne