How will co-ops reduce health care costs?
Co-ops would not buy insurance from private companies, but would provide the insurance themselves and contract directly with networks of providers for care. Many experts believe co-ops, as non-profits, could offer significant discounts when compared to traditional, for-profit insurance companies. Surpluses are returned to members in the form of reduced premiums, enhanced benefits, or lower cost-sharing. In addition, the co-ops would be motivated to keep costs down by implementing innovations such as wellness programs, chronic disease management, and integrated care. Will co-ops be run by the states or federal government? Neither. The federal government would guide the creation of co-ops by setting standards and providing the seed money, but the non-profit, self-governed co-ops would form and run themselves. Members and a democratically elected board would make decisions such as determining premiums, benefits covered, deductibles and co-pays. Have co-ops proven themselves a successful b
