Can Insurance Co-ops Solve the Healthcare Crisis?
Senator Kent Conrad (D-ND) has offered non-profit, consumer-owned insurance cooperatives as an alternative to for-profit insurance companies. Conrad says his healthcare coop idea is gaining support – even from Republicans – because it would put local people in control and keep the federal government out of the equation. Insurance co-ops are an admirable idea. Co-ops are, by definition, member owned, democratically run, and operate on an at-cost basis, returning savings to members in the form of dividends or reduced prices. Yet, Congress has yet to demonstrate how these cooperatives would operate and resolve our needs. Within the current debate, the media, advocacy groups, health care analysts, and policymakers use the term “co-op” to mean different types of entities. Moreover, insurance co-ops will only succeed if Congress provides the right structure, sufficient start-up funding, and government oversight while addressing important details such as employer mandates and prescription dru
