[Bleeding Heartland Logo]

Bleeding Heartland is a community blog about Iowa politics: campaigns and elections, state government, social and environmental issues. Bleeding Heartland also weighs in on presidential policies and campaigns, federal legislation and what the Iowans in Congress are up to. Join our community, post your thoughts as comments or diaries, help keep our leaders honest and hold them accountable.
- desmoinesdem
- Iowa 2012 election coverage
- Who's who in the Iowa House for 2015
- Who's who in the Iowa Senate for 2015
- Iowa wildflowers
2014 Election Coverage
- Absentee ballot numbers
- IA-Sen
- IA-Gov
- IA-01
- IA-02
- IA-03
- IA-04
- Secretary of Agriculture
- Secretary of State
- State Auditor
- Iowa Senate overview
- Iowa House overview
- Senate district 5
- Senate district 7
- Senate district 9
- Senate district 12
- Senate district 13
- Senate district 15
- Senate district 17
- Senate district 27
- Senate district 29
- Senate district 39
- Senate district 41
- Senate district 47
- Senate district 49
- House district 8
- House district 15
- House district 25
- House district 26
- House district 28
- House district 30
- House district 33 (2013)
- House district 40
- House district 51
- House district 60
- House district 63
- House district 65
- House district 68
- House district 73
- House district 82
- House district 91
- House district 92
- House district 95
- House district 99

Advanced Search

Paid Advertising

Bleeding Heartland
It's what plants crave.

Health insurance co-ops: Designed to fail

by: desmoinesdem

Thu Sep 17, 2009 at 20:56:23 PM CDT

Senator Jay Rockefeller was excluded from the bipartisan group of Finance Committee members who worked on the bill Chairman Max Baucus unveiled on Wednesday, so he spent part of his summer vacation researching the fake public option favored by some "gang of six" members. He reported on his findings in an open letter to Baucus and ranking member Chuck Grassley. You should click through and read Rockefeller's whole letter, but here are some excerpts:

"First, there has been no significant research into consumer co-ops as a model for the broad expansion of health insurance. What we do know, however, is that this model was tried in the early part of the 20th century and largely failed. As the USDA states in its response letter, 'Government support for the cooperative approach to delivering universal health care was reduced during [World War II] and terminated afterward.' This is a dying business model for health insurance. Moving forward with health insurance cooperatives would expose Americans, who are hoping for a better health care system, to a health care model that has already been tried and largely failed in the vast majority of the country.

"Second, there is a lack of consistent data about the total number of consumer health insurance cooperatives in existence today, and there have been no analyses of the impact of existing health insurance cooperatives on consumers.

"Third, all of the consumer health insurance cooperatives identified by the [U.S. Department of Agriculture] and [National Cooperative Business Association] operate and function just like private health insurance companies. Therefore, it is unclear how expanding consumer health insurance cooperatives would actually achieve greater affordability for consumers or bring about greater competition in the private market...

The Congressional Budget Office doesn't expect the co-ops to affect the cost of the Baucus bill:

(The proposed co-ops had very little effect on the estimates of total enrollment in the exchanges or federal costs because, as they are described in the specifications, they seem unlikely to establish a significant market presence in many areas of the country or to noticeably affect federal subsidy payments.)

The failure of co-ops to provide competition in Iowa bears out the CBO's expectations:

In the 1990s, Iowa adopted a law to encourage the development of health care co-ops. One was created, and it died within two years. Although the law is still on the books, the state does not have a co-op now, said Susan E. Voss, the Iowa insurance commissioner.

Wellmark Blue Cross and Blue Shield collects about 70 percent of the premiums paid in the private insurance market in Iowa and South Dakota.

It's past time for President Obama to stop sending out White House staff and cabinet secretaries to signal that Obama might accept cooperatives as an alternative to a public health insurance option.

Here's hoping that even in the absence of presidential leadership, Rockefeller can get strong amendments attached to the Baucus bill or make sure it never gets out of the Senate Finance Committee.

desmoinesdem :: Health insurance co-ops: Designed to fail
Tags: , , , , , , , , , , (All Tags)
Print Friendly View Send As Email
Tweet This!


Make a New Account



Forget your username or password?

Iowa Liberal Blogs
- Blog For Iowa
- Iowa .Gif-t Shop
- Iowa Independent (archive)
- Iowa Policy Points
- Iowa Starting Line
- Iowans for a Future That Doesn't Suck
- John Deeth
Iowa Conservative Blogs
- Hawkeye GOP
- The Bean Walker
- Caffeinated Thoughts
- The Conservative Reader: Iowa
- The Iowa Republican
Journalists' blogs and research
- 24-Hour Dorman
- Cedar Rapids Gazette government page
- Iowa Fiscal Partnership
- Iowa Policy Project
- Iowa Politics Insider
- Iowa Watchdog.org
- On Brief: Iowa's Appellate Blog
- On the Campaign Trail with Ed Tibbetts
- Politically Speaking
- Price of Politics, etc.
- O.Kay Henderson at Radio Iowa
Iowa Democrats
- Dave Loebsack (IA-02)
- Iowa Democratic Party
- Iowa House Democrats
- Iowa Senate Democrats

Powered by: SoapBlox