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.

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.

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.

Small legally restricted statewide co-ops are in no way a substitute for a real national public option.