Analysts said the proposal sets the stage for multiple regional co-ops that would likely lack the leverage in negotiating rates to strongly compete against established players.Small legally restricted statewide co-ops are in no way a substitute for a real national public option.
The co-ops would enroll individuals and small groups, rather than large businesses, also limiting their sway. The bill further appears to avoid giving the co-ops any special pricing power for their plans, analysts said.
Co-ops Are No Threat To For-Profit Insurance
I highly recommend read this new Reuters story on how useless Conrad's idea of small statewide co-ops would be. The story quotes several experts who all agree with what most of the progressive community has been saying for months. The co-ops would be so legally restricted by Baucus' bill that they would have little to no impact on health insurance in this country.