Senators from both parties and key committees are beginning to voice support for an idea proposed by Senator Kent Conrad (D-ND) earlier this week that is an alternative to a government-run public insurance company (“public plan”).
While complete details have not been released, Conrad’s proposal would allow the creation of a series of state and regional consumer health cooperatives (“co-ops”). The co-ops would be non-profit, non-government insurance options for the self-employed or small businesses regulated by standards from the National Association of Insurance Commissioners. These types of arrangements are found in other sectors of the economy, including agriculture. The National Cooperative Business Association and National Rural Electric Cooperative Association provide good examples of how current cooperatives operate.
Since the cooperatives would not be government run and exist currently, the idea has gained support from Republicans such as Finance Committee ranking member Charles Grassley (R-IA): “If it can be presented as an entirely…private-sector operation and incentive and like co-ops that we know, generally in the Midwest, I think it’s got some possibilities.” However, the idea still is under-development; the National Journal is reporting (subscription) that Senator Charles Schumer (D-NY) is working with Senator Conrad to make the idea palatable to pro-public plan Democrats.
Associations such as ASAE have been pushing for pooling ideas such as cooperatives (like the Small Business CHOICE Act) as a way to provide savings for small businesses and the self-employed. Can cooperatives (run by associations or not) be a viable alternative to a public plan?
Quick Hits
Baucus staff threatens Democratic health care lobbyists – again (subscription)… Baucus announces a June 23rd mark-up of health care legislation, with a “draft mark” released June 17… Democratic infighting on health care examined by Politico… The American Medical Association comes out against the public plan… President Obama takes health care push to Wisconsin… The Washington Post profiles maybe the most important person in the health care debate.
