What is the co-op model?
It's a nonprofit, nongovernmental firm run by its members, the consumers. The details of how it will be set up have yet to be determined. But in addition to insurance, successful existing co-ops actually provide care, own their own hospitals and have dedicated multispecialty physician groups. The goal is to restrain costs and cover more of the uninsured.
It's a nonprofit, nongovernmental firm run by its members, the consumers. The details of how it will be set up have yet to be determined. But in addition to insurance, successful existing co-ops actually provide care, own their own hospitals and have dedicated multispecialty physician groups. The goal is to restrain costs and cover more of the uninsured.
Where are existing co-ops?
HealthPartners, based in Minnesota, and Group Health Cooperative, headquartered in Seattle, are considered two successful systems and serve more than 500,000 members.
HealthPartners, based in Minnesota, and Group Health Cooperative, headquartered in Seattle, are considered two successful systems and serve more than 500,000 members.
What are the benefits of a co-op?
Unlike a public plan, government bureaucracy wouldn't be a factor, satisfying critics who want to keep Uncle Sam out of the health business.
Successful co-ops provide excellent health care while keeping administrative costs down. Depending on how it's set up, a national cooperative organization could also negotiate doctor and drug prices for its members. Critics say co-ops won't have the leverage of the government to drive costs down.
Unlike a public plan, government bureaucracy wouldn't be a factor, satisfying critics who want to keep Uncle Sam out of the health business.
Successful co-ops provide excellent health care while keeping administrative costs down. Depending on how it's set up, a national cooperative organization could also negotiate doctor and drug prices for its members. Critics say co-ops won't have the leverage of the government to drive costs down.
What are the drawbacks of the co-op model?
One fear, as voiced by the White House, is that it would take too long for these new organizations to become established and compete with private insurers. The model would most likely require an undetermined allocation of federal startup dollars.
Co-ops aren't free for consumers, and it's unclear how lawmakers intend to establish rates to make them affordable for the 46 million Americans who are currently uninsured.
One fear, as voiced by the White House, is that it would take too long for these new organizations to become established and compete with private insurers. The model would most likely require an undetermined allocation of federal startup dollars.
Co-ops aren't free for consumers, and it's unclear how lawmakers intend to establish rates to make them affordable for the 46 million Americans who are currently uninsured.
SOURCES: The Commonwealth Fund, News Wire Services
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