June 10, 2009
Posted: June 10th, 2009 10:08 PM ET

From

WASHINGTON (CNN) - A proposal to create privatelyoperated
health-insurance cooperatives as an alternative to a government-run health plan is gaining steam in the Senate, several key senators said Wednesday.

The plan is shaping up as possibly the most viable way to bridge a key difference between Democrats and Republicans negotiating a health care overhaul, senators said.

The non-profit co-ops, based on the model of electricity, agricultural and other cooperatives in rural states, would be run and paid for by its members, although an initial infusion of federal funds might be needed to get them off the ground, senators said.

"I'm doing all I can to get a bipartisan solution, and right now the so-called public option is being transformed into a private alternative," Senate Finance Committee Chairman Max Baucus, D-Montana, said as he left a closed-door meeting on the issue. "It may not work. If so, we'll have to find something else. But right now it looks like it has a decent chance of working."

Baucus tasked two senior Democrats - Charles Schumer of New York and Kent Conrad of North Dakota - to develop legislation that might be acceptable to enough lawmakers from both parties to pass.

When Conrad first developed the co-op proposal, Schumer balked at it, arguing co-ops might struggle to compete with big health-insurance companies and therefore would not help drive down costs. But after meeting with Conrad and other health negotiators Schumer said he would see if they could craft a workable plan.

Baucus said President Barack Obama was "interested" in the co-op idea when they discussed it at the White House Wednesday morning.

Asked if the proposal was emerging as the key to a health care compromise, Sen. Charles Grassley of Iowa, the top Republican on the Finance Committee was cautiously optimistic.

"It's got possibilities. But it's too new and there were a lot of questions raised about it - not outright objections - in our caucus but a lot of questions," he said.

Filed under: Health care


Your Morning Melange | DEEP BRAIN DIARY   June 11th, 2009 5:18 am ET

[...] want to reform health care.  Republicans do not.  Therefore, Democrats will water down their proposals so that nothing of any real consequence is done.  That's called [...]

Mary the Democrat   June 11th, 2009 2:40 am ET

Co-ps might be something the Senate likes, but they make Americans nervous.

I hope they change their mind before it falls apart.

Danny J   June 11th, 2009 1:56 am ET

This actually doesn't sound like a bad idea. While our current system is broken, Universal Health care seems like it would be as successful as other government run programs, namely social security, the postal service, the DMV...

Mikey   June 11th, 2009 1:46 am ET

This is music to my ears. Finally a suggestion that address the root cause for the rampant inflationary trends in health expenditures, health financing providers. It looked for a moment there we might have another Clinton Era failure or Bush Era MMA debacle again.

Andrew from Chicago   June 11th, 2009 1:02 am ET

Non-profit they may be, but how much will I have to pay for it with actual "can buy burritos with them" dollars that come out of my bank account?

I'd like to see a system that actually supports people who can't afford an insurance bill-sized hole in their income. Give me a medical exam and a vaccination on the government dime, and I'll pay for insurance that gets me surgery as soon as I get a raise.

at least there's no more mention of the ridiculous notion that we should punish people who are too poor to pay for insurance.

renea   June 11th, 2009 12:50 am ET

I just pray that this universal healthcare passes not for me but for the people that dont have any healthcare at all. all these people that are against this may be you and your family already have it but i think about the ones that dont,even ones in my own family who dont. so im hoping that some kind of healthcare passes.

Manny BLUM, Bernalillo   June 11th, 2009 12:49 am ET

This COOP system is essentially what is used in Germany, and does so very well for many years,

There, all Heath Insurance providers are such type of COOP, competing one with the other. They are non profit and privately managed, following the basic rules as imposed by the government, There are not commer ial HBO's.

The membership is obligatory and the cost proportional to the income of the beneficiary.

Proud DHS radical   June 11th, 2009 12:08 am ET

I guess the government is going to run our health care like they do the Postage Service.

Ricky   June 11th, 2009 12:06 am ET

If co-ops can provide decent, affordable health care to more people and bridge the gap between Dems and Repubs, go for it! Better a doable compromise instead of partisan deadlock and thus continuation of the a bad status quo. And if this works, who knows ... maybe Dems and Repubs will find they can actually work together instead of against each other. Win-win is much better than win-lose or lose-lose.

Hope   June 11th, 2009 12:04 am ET

We dont want co-ops we want Federal Insurance period.

Kevin, Austin   June 10th, 2009 11:49 pm ET

Note to Mr. Baucus – you don't need a bi-partisian solution, you need the correct solution. What is the objection to a government run plan? And don't give me any hooey about big bad government. They run a large number of successful enterprises everyday that do just fine (schools, police, fire, the military, social security, etc.) Sure the things have their share of problems, but isn't it apparent that the "free" market is rife with corruption and problems too. Or are you just sticking your head in the sand.

David   June 10th, 2009 11:41 pm ET

A 'co-op' option is a bad idea. Only a government run 'single payer' option will provide the affordable coverage gap for all Americans, along with being able to maintain control over market pricing of services long term.

Expecting insurance companies, hospitals, pharmaceutical companies and doctors to reduce costs all on their own is the same failed 'free market' concept that bankrupt our economy.

NYC REPUB   June 10th, 2009 11:37 pm ET

I like the single payer system as a option to all who want it.......If not those who like their healthcare currently can keep it. That's a fair and balanced choice for all. However let's see what this co-op plan proposes......DEMS need to grow a pair though. They are refreshingly on the right side of many issues as of now.

Really!?   June 10th, 2009 11:32 pm ET

This maybe the best idea on the subject. Amazing that a rational, possibly sustainable (gov ran is NOT sustainable look at Medicare), solution can be found when both parties work together. Rather than we need to do this right now, pass this trillion dollar legislation crap so far this year.

Hopeful Optimist   June 10th, 2009 11:21 pm ET

I think the sticking point with Repubs concerning a government-run option is that it will probably not only be cheaper, more accessible and better over all, but it will end up drawing people away from their existing plans with private insurance, thereby wrecking the industry as we currently know it.

Think about it. Right now there are people in this complex maze of an industry who have a great stake in the gouging and inefficiency that are commonplace as the system now exists. They will fight tooth and toenail to protect their gravytrain. Its human nature. ANY TIME THERE IS A CONCERTED EFFORT TO THWART WHAT IS SO OBVIOUSLY RIGHT, ITS SPEARHEADED BY THOSE WHO HAVE A STAKE IN WHAT IS SO OBVIOUSLY WRONG.

democrat no mas(Independant now)   June 10th, 2009 11:18 pm ET

I have used member owned co-ops for fire insurance, electricity and farm commodities for years. They can work well if losses are not larger than members can overcome. They also need supervision if the directors running them get out of hand with perks & pay. However, they are not free. The only thing is they can give excess premiums back as dividends or credits to member owners. This is probably along the lines of how most insurance companies started, before they got too big for their britches. This doesn't seem to be what most pro government healthcare people want. What they really want is free coverage.

Jon   June 10th, 2009 11:12 pm ET

The progressives with fight this foolishness tooth and nail. This is not a compromise. This is a complete and total sellout to republicans. This is not like a public plan. This is not a compromise about public plan. This is nothing. It would do nothing, and have none of the benifits of a public option.

Lynn   June 10th, 2009 11:07 pm ET

Hah! The Repugs will do anything to keep Americans from having health care and to keep the big greedy insurance companies fat so that they can contribute to their campaigns.

The only way to effectively reduce costs is with a public alternative and that is what we should have.

xargaw   June 10th, 2009 11:07 pm ET

This is a terrible idea. It still leaves out millions of Americans. We need a real Government option. Follow the insurance company and big pharma money and you will see who is selling out the country from both parties. It is disgraceful. Everyone of them should loose their seat if they ruin this opportunity for universal care.

Mick   June 10th, 2009 11:05 pm ET

It's good to see that the Republicans are doing everything they can to obstruct the will of the people – 0ver 70% demanding reform – to serve the interests of their corporate masters in the Health Insurance and Pharmaceutical industries.

alvino   June 10th, 2009 11:03 pm ET

The republicans will not support any program that takes away the monoply their campaign donors have created.

Peoples Voice   June 10th, 2009 10:55 pm ET

Why do the Repubs always have to keep the big companies floating while trying to drown the public. They never do anything for the average citizens.

What a bunch of selfish, greedy, despicable troglodytes.

S Callahan   June 10th, 2009 10:52 pm ET

Sounds like they are taking the models of the NYS Union plans...which are pretty good.

barking republican ankle biters   June 10th, 2009 10:39 pm ET

I will just say NO to what ever republicans come up with,just like they have done for years.

UNHAPPY LA. Dem   June 10th, 2009 10:27 pm ET

Health care needs to be left alone.Socialized medicine has been proven time and time again not to work. In a years time it will be so screwed up it will never work again. Look at the British system.

Obama - NOPE   June 10th, 2009 10:25 pm ET

Co-ops won't work, because the uninsured won't support them. They want Obama and the Democrat party to do everything for them, without any personal responsibility or expense for themselves.

Willy Brown   June 10th, 2009 10:19 pm ET

Tax Monster, Tax Monster run!

Co-op?   June 10th, 2009 10:10 pm ET

baloney, nationalize them

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