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Rob Kailey is a working schmuck with no ties or affiliations to any governmental or political organizations, save those of sympathy.

Kent Conrad's public option "compromise"

by: Jay Stevens

Fri Jun 12, 2009 at 15:22:08 PM MST


Ezra Klein interviewed Sen. Kent Conrad (D ND) about his compromise to a public option. Essentially he's proposing a that a series of "federally-chartered co-ops" play the role as public health insurance in opposition to for-profit insurance. That is, they're not-for-profit health insurance alternatives that aren't controlled by the government.

Klein and Robert Reich both express concern that the co-ops "won't have any real bargaining leverage to get lower prices because they'll be too small and too numerous." Klein also thinks this compromise won't appease those seeking a full public option, "because, quite frankly, co-ops don't represent what they're looking for: A chance to test the thesis that government is a superior provider of medical coverage."

Matthew Yglesias:

To put it most crudely, the available evidence appears to overwhelmingly indicate that governments can provide health insurance of equal quality at lower cost to the private sector. It's also true that a certain kind of ideological dogma says this can't possibly be true. The view behind the public insurance option is that the dogma ought to be put to the test through competition. Proposals that aim to do something, not that don't aim to put the dogma to the test, are not a compromise. Indeed, the idea of a "public option" is itself a compromise between ideological dogma and the evidence in favor of single payer. The health co-ops seem like an interesting idea to me, but anything that drops the public plan is a proposal to drop the public plan not really a public plan "compromise." That said, insofar as Congress is inclined to do this it ought to be done well.

Personally, as an avid supporter of a robust public option, I don't give a rat's *ss what proves whose theory. I just want access to portable, affordable, and reliable health insurance, which I ain't getting on the market. That is, if the public option is public, fine. If it's a federally-chartered co-op, fine.

In Yglesias' post, he quotes Ivor Volsky's requirements for such a co-op to ensure it's not set up for failure from the beginning - which includes making it a national co-op large enough to negotiate low prices.

Of course all this talk about co-ops could very well be moot:

House Speaker Nancy Pelosi told the Huffington Post Thursday that a health care overhaul that did not include a public option wouldn't make it through the House because it 'wouldn't have the votes.'

...Asked by HuffPost if she would allow a reform package without a public option out of the House, she responded: 'It's not a question of allow. It wouldn't have the votes.'

The bill would lack the votes because the GOP generally opposes Democratic reform proposals, and the 77 member Congressional Progressive Caucus -- rarely heard from on the Hill -- has been particularly vocal in its commitment to oppose any reform that doesn't include a public option. The public plan's popularity extends beyond progressives and is broadly popular with the Congressional Black Caucus, Congressional Hispanic Caucus and even two-fifths of Blue Dogs, the conservative Democratic coalition.

Pelosi, during the press conference, also rejected a compromise proposal by Sen. Kent Conrad (D-N.D.) to create private, nonprofit, regional health care cooperatives instead of a national public option.  

Pelosi wasn't having it: "Not instead of a public option, no," she said.

Sometimes those of us that write about bills or reforms working through Congress forget there's another body other than the Senate, a forgivable error given the difficulty of finding 60 votes in the more conservative body to avoid filibuster. But it looks as if House Democrats are going to insist on real health care reform. Looks like we'll have an intra-Congressional tussle to watch...

Update: Naturally Ezra's already posted an interview with Rep. Lynn Woolsey, leader of the 80-member House Progressive Caucus on the group's insistence a public option be included in any health reform bill. Woolsey: "There are 80 members. And we have drawn a line in the sand. And we're serious about it."

I think I have a new hero.

Jay Stevens :: Kent Conrad's public option "compromise"
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Just so people are clear; (0.00 / 0)

The bill would lack the votes because the GOP generally opposes Democratic reform proposals, and the 77 member Congressional Progressive Caucus -- rarely heard from on the Hill -- has been particularly vocal in its commitment to oppose any reform that doesn't include a public option.

Actually, the progressive caucus is on record favoring a single payer system. The public option is their second choice fall back position.


Yet another distraction (0.00 / 0)
tossed out there by the insurance industry loving Democrats...lets see...we've had the "trigger", we've had the "trigger with modifications", we've had the "small business only plan", and now we have the "co-ops"...what's next?

I find it difficult to believe that Obama can't find 51 votes for single payer...or for that matter 51 votes for a strong public option.


LIEberman (0.00 / 0)
has weighed in on the "public option"...he's against it. No surprise considering the money he gets from the insurance industry in CT...he said

"lets get something done instead of having a debate"...

Let's pass a bad bill rather than a good one...Yet another distraction to add to the list...


[ Parent ]
I'd have to see more details (0.00 / 0)
But I like the idea of coops, because I hate the idea of IRS enforced mandates and tax credits for subsidies. The most vulnerable among our populace lose out hugely in that scenario.

But beings as we're already bailing out the private insurance industry--it's called the medical bankruptcy program--and that is failing, we might as well nationalize the most egregious private insurers, and restructure them and sell them off to federally chartered coops.

I'm only half serious about the nationalization stuff. But with all of the talk about nationalizing some banks and GM, why not talk about nationalizing those insurers that are bailing themselves out through driving their clients to medical bankruptcy?

Back to coops: not as a compromise, or alternative,but as an addition to the mix. Right there next to a strong public option.

Who says single payer couldn't be provided via a national health coop run by the people instead of by the government?



Co-ops too small to balance insurance companies. (0.00 / 0)
Like states, co-ops are too small to counter insurance multi-nationals.  In addition to a single-payer system, we need new regulations to eliminate discrimination on the basis of age, preexisting condition, job loss, relocation, and any number of other loopholes found in private plans.  Like Montana Power before deregulation, terms and conditions, and profit were negotiated, ratepayers were much happier.  A strong citizen-enforcement provision would ensure that industry could not corrupt the regulatory watchdog agency. Any system without strong regulation and 300 million members won't deliver what's needed.

That's why I was thinking (0.00 / 0)
of a single national coop, evolving to single payer.

Really, what do people think of a single national coop, or several large regional ones (large enough to achieve maximum efficiency) run directly by its owners--the people--that one could choose to buy into, and eventually evolve into a single payer if enough people formed a critical mass?

The federal government could facilitate its charter by capitalizing it, and provide direct subsidy to the coop (not the individual member) on a sliding scale for those who cannot afford to buy in. Guaranteed, auto enrollment. Stable and progressive premium fee structures. And as long as you are a member of the coop, you'd collect capital credits (the equivalent of reinvested stock dividends) which would encourage you to stay a member.

I'm just thinking outside the box because when a strong public option fails (and it will), it would be nice to have a fallback so the people could take things under their own control, because the government and Congress has failed them.

I guess another alternative would be a constitutional amendment that would allow national citizen initiatives. Now wouldn't that be fun?

Congress has become too corrupt to do the people's business. And the only way to deal with that is for us to move the power structure out of D.C. A cooperative national health initiative and/or national citizen's initiatives help to accomplish both.


[ Parent ]
What do you do with the people who don't buy in and get sick? think about it this way; (0.00 / 0)
would you want to do fire protection like that?

Not a co-op memeber, your house burns down. But so does your neighbors.

Co-opts work well for producers to market commodities, or for say people who like organic food to buy in bulk.

But they don't work very well for socialized systems like insurance. Insurance is a socialized concept.

Single payer that works means everybody in, nobody out.

Otherwise it's like what we have now.

There are co-opt insurance providers right now. But they offer no real savings over BCBS


Look, I'm not going to argue (0.00 / 0)
pro or con about coop health insurance, nor necessarily advocate for it. But right now, it has been put on the table, and it behooves us to understand it. I know little about how it would work or is structured, but there is a model that all of us can look at. It's called "Group Health Cooperative" and it covers a half million people in Washington and Idaho--including the likes of Microsoft, Boeing and a variety of governmental entities.

So, I'd encourage people to take a look at it--criticize it, adore it, hate it, what have you--and see if anything can be learned by that sort of model and extending it to a national level. Because that may be what Congress decides to give us instead of a public plan, or nothing at all.


[ Parent ]
The question (0.00 / 0)
of who will pay, or how we will afford single payer, has a simple answer..the costs savings from going with a single payer will amount to over $400 billion a year in administrative costs alone...

Co ops are just another road block being tossed out there by the insurance/HMO/pharma lobby...they sound nice and warm and fuzzy but do little to reduce costs and provide affordable, quality care...they do not reach a sizable enough scale to do any good...


[ Parent ]
Well you asked what people think of a large national coop or a multi regional one and I replied (0.00 / 0)
what I thought about it.


[ Parent ]
single-payer and co-ops... (0.00 / 0)
Technically, of course, all "single-payer" means is that there's a single provider of health insurance. It doesn't have to be government. That said, I'm with JC. I don't care if it's a government provider or a non-profit co-op that's large and transparent enough to satisfy our needs for health care.

And Steve W: I don't really follow your argument that a large, national non-profit co-op wouldn't work. Remember, we're headed towards mandatory insurance coverage for all Americans. I'm assuming that a co-op under that scenario would have enough members to both negotiate fair prices and have enough subscribers to back claims. (Plus, I assume, it'd be backed by the federal government.)


[ Parent ]
questions to ask ... (0.00 / 0)
if you lose or change jobs does the co-op coverage follow you like single payer would?

does a co-op save money or create more dupicated bureaucracy? we already have over 1700 private insurers?

guess i am willing to look at it. lots of questions though.



United we stand, divided we fall.

power to the polite people!


[ Parent ]
How would the co-op mandate that everyone put in money? JC didn't like the idea of (0.00 / 0)
IRS enforcement. Would coop members take turns shaking down people who didn't want to join?



[ Parent ]
Extend Medicare, it works. (0.00 / 0)
A preferrable compromise would be to lower the minimum age for Medicare to, say, 50.  Add the rest later.  Between the ages of 50 and 65 lots of things can go wrong, lots could be prevented, but private insurance costs increase exponentially. Many people in their early 60's are counting the days.

Um... (0.00 / 0)
Some of us in our early-50's are counting our days too. Nothing like having pre-exisitings an unable to get health care insurance. Let's see--medical bankruptcy? Or put off health care, self-medicate and hope you make it to 65.

That's the "uniquely American" choice many of us face.


[ Parent ]
You could sell that to the insurance industry, Then they could cover people who don't get sick (0.00 / 0)
But the cost might be rather high to pay for it.


[ Parent ]
Conrad is nuts, (0.00 / 0)
and he's on the insurance/big pharma teat to the tune of close to $1 million dollars...

What does he think, me and some friends are going to get together, form a coop, and each kick in $100 toward some insurance?  

Look, I had city of Missoula insurance at one time...the city was "self insured"...in other words they hooked up with the county (?) and possibly the school district, to purchase a large chunk of insurance coverage...it was pretty good coverage, but the costs constantly went up...and then the city took some huge hits...some serious medical issues...and the city council did not budget enough money so they had to dump in, on a couple of occasions, $300,000 to cover expected shortfalls...

I'm sorry, but coops are NOT the way to go...you would still be purchasing insurance from private, for profit companies with NO incentive to reduce costs.


Right you are, big sage. The co-ops are a crock amongst a lot of crockery. (0.00 / 0)


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