MYTH 10: Co-ops are an adequate substitute for a public option
CLAIM: The co-op "compromise" eliminates the need for the public option.
REALITY: Progressive experts argue public plan is necessary for successful reform. Numerous media figures and outlets have characterized Sen. Kent Conrad's (D-ND) cooperative health insurance proposal as a "compromise," "hybrid," or bipartisan "alternative" to a public insurance option without noting the view by progressive experts that a public option is necessary for health care reform to be successful and that any departure from that will result in the failure of reform efforts. These experts dispute suggestions that Conrad's co-op proposal is a plausible midway point between competing methods of addressing health care reform, because, they say, it precludes a fundamental component of effective reform: bargaining power against the health care industry. For example, former Clinton Labor Secretary Robert Reich described the co-op proposal as a "bamboozle" and said that "[n]onprofit health-care cooperatives won't have any real bargaining leverage to get lower prices because they'll be too small and too numerous. Pharma and Insurance know they can roll them. That's why the Conrad compromise is getting a good reception from across the aisle."
And University of California-Berkeley professor Jacob Hacker argued that Conrad "has offered no reason to think that the cooperatives he envisions could do any of the crucial things that a competing public plan must do." Additionally, ABC's Charles Gibson reported that "several health care experts" have said, in Gibson's words, "[I]f you take out the public option in terms of insurance, there's going to be no restraints on the cost of insurance." [ABC's World News with Charles Gibson, 8/17/09]
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