This morning on CNN, Sen. Kent Conrad (D-ND), the author of the health care co-op proposal that is apparently gaining traction among many Democrats, argued it’s a “very successful business model.” But when host John Roberts repeatedly pressed Conrad on whether the creation of non-profit, member-driven health care cooperatives would drive down costs for consumers, Conrad acknowledged they would not. [Think Progress]
The New York Times adds that the history of health care co-ops has not fared well:
The co-op idea is so ill defined that no one knows exactly what it would look like or how effectively it would compete with commercial insurers. [...]
In the 1990s, Iowa adopted a law to encourage the development of health care co-ops. One was created, and it died within two years. Although the law is still on the books, the state does not have a co-op now, said Susan E. Voss, the Iowa insurance commissioner.
Conrad acknowledges his co-op proposal would do little to tackle health care costs, the single biggest challenge of reform. Ironically, the public option –- which Conrad is trying to defeat –- has been estimated by the Congressional Budget Office to significantly reduce costs over time. And yet, according to Conrad, the public option is not on the table simply because “there have never been the votes in the United States” for it.
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