Insurance Co-ops?

As the Administration stages a tactical retreat

WASHINGTON – President Barack Obama is willing to embrace insurance cooperatives over a government-run plan as the White House faces mounting opposition to its broad overhaul of the nation’s health care system.

Bowing to Republican pressure and offering political cover to fiscally conservative Democrats, Obama’s administration signaled on Sunday that it is ready to abandon the idea of giving Americans the option of government-run insurance. The shift leaves open a chance for compromise with Republicans that probably would enrage Obama’s liberal supporters but could deliver a much-needed victory on a top domestic priority.

Officials from both political parties are looking for concessions while Congress is on an August recess. Facing tough audiences, lawmakers and the White House are looking for a way to cover the nation’s almost 50 million uninsured while maintaining political standing.

Health and Human Services Secretary Kathleen Sebelius said that a government alternative to private health insurance is “not the essential element” of the administration’s health care overhaul. The White House would be open to co-ops, she said, a sign that Democrats want a compromise so they can declare a victory.

Under a proposal by Sen. Kent Conrad, D-N.D., consumer-owned nonprofit cooperatives would sell insurance in competition with private industry, not unlike the way electric and agriculture co-ops operate, especially in rural states such as his own.

With $3 billion to $4 billion in initial support from the government, the co-ops would operate under a national structure with state affiliates, but independent of the government. They would be required to maintain the type of financial reserves that private companies are required to keep in case of unexpectedly high claims.

Now I love how the first thing they mention is “Republican pressure.” Again, unless my math is mistaken, the Democrats have majorities in both houses so the Republicans have no pressure to exert; this is a sop to try and bring in the sensible Democrats who are objecting to this crap sandwich.

Now, is it me or does it seem like this idea sound a lot like Congress trying to do to/for the insurance industry what they did with Fannie Mae and Freddie Mac for the mortgage industry?

And we know how well that turned out.

6 Responses to “Insurance Co-ops?”

1. Posts about Barack Obama as of August 17, 2009 » The Daily Parr says:

   August 17, 2009 at 7:33 am

   […] will be successfully dissipated as a solution in a classically Hegellian fashion arrives on time. Insurance Co-ops? – coalitionoftheswilling.net 08/17/2009 As the Administration stages a tactical retreat WASHINGTON […]

2. Insurance Co-ops? says:

   August 17, 2009 at 8:12 am

   […] News Sources wrote an interesting post today onHere’s a quick excerptAs the Administration stages a tactical retreat WASHINGTON – President Barack Obama is willing to embrace insurance cooperatives over a government-run plan as the White House faces mounting opposition to its broad overhaul of the nation’s health care system. Bowing to Republican pressure and offering political cover to fiscally conservative Democrats, Obama’s administration signaled on Sunday that it is ready to abandon the idea of giving Americans the option of government-run insurance. […]

3. ricki says:

   August 17, 2009 at 8:38 am

   I wonder, also, with these co-ops, unless getting insurance coverage was made mandatory, if we wouldn’t still have some 40 million people w/o health insurance after them…

   because a big chunk of the “uninsured” are young’uns who apparently think they never will get sick or hurt, and so don’t need it and don’t wanna pay for it, or illegal immigrants (who shouldn’t be receiving most taxpayer-funded services, and besides, many of them are probably afraid of it being known they’re here)…and so on.

   I don’t know. I hold out hope these will be more like credit unions than like Fannie Mae but still, I have a distinct feeling of a camel’s nose entering under a tent somewhere…

4. JeffS says:

   August 17, 2009 at 9:32 am

   Co-ops sound very much like Fannie and Fred. Especially if the Dhimmicrats write the laws and regulations.

5. JeffS says:

   August 17, 2009 at 9:51 am

   Hmmmmmm! Mixed signals are coming from ObamaCare Command.

   Well, not mixed signals, actually. More like mixed up politicians.

6. Gary from Jersey says:

   August 17, 2009 at 3:39 pm

   I wonder how well insurors are going to do against taxpayer-backed, “non-profit” co-ops. You know, like what the Soviets used to call companies?