Health insurance co-ops failed in Iowa

by desmoinesdem, Tue Aug 18, 2009 at 05:26:51 AM EDT

I wasn't living in Iowa during the 1990s, so I had never heard about this episode before reading today's New York Times:

Hopes for co-ops may also be tempered by the experience of Iowa, home to Senator Charles E. Grassley, the senior Republican on the Finance Committee, which is trying to hash out a bipartisan health care proposal.
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.
To become established, a new market entrant would have to offer lower prices or better services, Ms. Voss said, adding: "Wellmark has a huge advantage. They already have contracts with practically every doctor in the state."

I am shocked, shocked to learn that senators hauling in huge money from the insurance industry want to scuttle plans for a public health insurance option in favor of cooperatives that would not provide any meaningful competition in the marketplace.

House and Senate Democrats need to stand firm against a fake public option. Contact your members of Congress, Stand With Dr. Dean or sign up with Health Care for America Now to advocate for a real public option.

Tags: Congress, cooperatives, health care reform, Public Option (all tags)

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No co-ops

The Republicans who are the main masters of the Senate are opposed to it:

http://www.gop.com/News/NewsRead.aspx?Gu id=72edae22-984e-4019-872c-1438fcc5452f

The sad thing is on the most important issue, and in the face of harsh reality the President is weirdly diffident to the Republicans, it's as if he is afraid to cross their path.

If you want outrage read Bob Herbert's column today:

http://www.nytimes.com/2009/08/18/opinio n/18herbert.html

by tarheel74 2009-08-18 05:31AM | 0 recs

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wow, it's almost as if

Republicans don't want health care reform to pass. Who could ever have guessed?

by desmoinesdem 2009-08-18 05:33AM | 0 recs

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Re: wow, it's almost as if

Let's see I can name 3 people off the top of my head:

Obama, Baucus and Conrad. Feel free to add to this list.

by tarheel74 2009-08-18 05:36AM | 0 recs

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Re: wow, it's almost as if

What I meant that these people never doubted their honest partners across the aisle.

by tarheel74 2009-08-18 05:37AM | 0 recs

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Co-ops are still on the books today in IA

another key point is co-ops are still legal in iowa today! the law still allows them...
co-op= fail

by TarHeel 2009-08-18 05:46AM | 0 recs

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Re: Health insurance co-ops failed in Iowa

I wonder if the scenario would be different if the co-ops were started simultaneously in a number of states and therefore could bring in a large enough number of customers in a region to compete with the big dogs.

by the mollusk 2009-08-18 08:06AM | 0 recs

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Re: Health insurance co-ops failed in Iowa

Over the weekend the Obama administration again signaled a retreat on the public option as an essential part of health care reform. In its misguided efforts to seek bipartisanship with the Republicans, the White House seems to be negotiating with itself, making more concessions to no avail. The priority for the Republicans is to bring down Obama and the Democrats, not to ccoperate in the enactment of legislation that would benefit the American people.

The retreat led to increases in the stock prices of health care insurers. More profit for them seems to be a Republican goal. But since Republicans oppose government spending, you might think that they would consider this: the legislation will provide subsidies for low income uninsured people so that they can buy insurance. If a lower cost public option is available, the government saves money.

But of course we can't have more socialism, like Medicare.

During the primaries, I enthusiastically supported Obama. I was confident that Hillary would make a good president. But I considered Barack Obama to be someone special, a tranformative person who might well be a great president. I still support President Obama but some of his Bush-like decisions have been a disappointment and I think his political decision to court Republicans assiduously on health care has been a grave mistake.

homer www.altara.blogspot.com

by altara 2009-08-18 09:07AM | 0 recs