Time Spreads Confusion About Health Care Reform

Joe Klein published an article in Time magazine which does more to confuse his readers than inform them. He does not seem to understand the basics of the current health care debate. In his article he states:

Most important for long-term reform, a system of health-care superstores — the wonks call them "exchanges" or "co-ops" — where individuals and small businesses can go to buy a plan, could be included.

This statement is dangerously uninformed. The “exchanges” and the “co-ops” are two radically different proposals. They are in no way similar.

An “exchange” could be described as a health-care superstore. It would be a single place where an individual or business could compare the prices and benefits of several plans. An “exchange” is like a highly regulated Orbitz for health insurance.

The “co-ops” being proposed would be non-profit health insurance companies. They would be health insurance companies that are member owned and operated. They would sale health insurance plans just like Aetna, Humana, Cigna, etc. The “co-ops” could be described as the equivalent of a credit unions, but for health insurance instead of banking.

The “exchanges” are where you compare all the insurance plans. The “co-ops” are non-profit insurance companies that would sale insurance plans. An “exchange” is a marketplace, while a “co-op” would be just one of the many companies selling health insurance policies in that marketplace.