Apparently the “public option” is “dead”.
bowing to Republican pressure, President Barack Obama’s administration signaled on Sunday it is ready to abandon the idea of giving Americans the option of government-run insurance as part of a new health care system.
In its place? Lots of intrusive and job killing rules and requirements federalizing health care obligations. And a purportedly new concept…. “health care co-operatives”.
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.
I happen to be a happy member of two cooperative structured businesses – one the insurance giant USAA and the other the outdoor products retailer REI.
I’ve bought catastrophic health care insurance from USAA when I was in between coverage in the past.
USAA was created by and for Army officers. REI by outdoor enthusiasts. They were created without government funding. Lots of coops exist that were started privately – whether it be New York apartment buildings or orange growers in Florida.
This can all be handled much simpler. Just permit national markets in health care. I mean, what does federally chartered a co-op solve except that Obama created it and can claim credit for it?
And I worry A LOT about federally chartered organizations. Particularly in how much I’m responsible for their doings. Three of them, Fannie Mae, Freddie Mac, and the FDIC, almost ruined the world economy last year. I’m dubious that these co-ops won’t be given more money, more regulatory relief and thus become the only game in town.
So, co-ops, well… whatever. Federally funded and chartered ones? No thanks.
As to health care reform…. it appears the main goal of the Democrats now is to get young people to pay for old folks by forcing them into the same insurance pools. We will see how that works out for them.
August 16th, 2009 at 4:38 pm
http://www.themilkweed.com/WatertownDailyNewsJan06.htm
Co-ops get like governments, and health care is a lot more complex than cows, milk and cheese!
August 16th, 2009 at 5:19 pm
It says a lot about Obama and company that their instinct is to remove profit. I think these are just trojan horses. They get them as “co-ops” and then they fund them later, They have an added “bonus” of being a way to send Ken’s money to Democratic constituencies through co-op refunds at the end of the year.
I don’t, yet, understand how Obama will take over the UAW, SEIU, and Blue State pension obligations. That was the “public options” real goal.
August 16th, 2009 at 8:04 pm
The USG certainly did provide USAA a benefit: the USG pre-screened candidate insurance customers to find an intelligent and healthy class of males, whose health would be protected by regular free medical care with paid time-off for health problems, to whom insurance could be marketed at lower rates than ordinary commercial insurance could offer.
August 16th, 2009 at 9:17 pm
When did USAA start providing medical coverage? Do they? Have they always? I have only ever used them for auto and home insurance. Its because they can be selective about who the cover that they can offer better rates and service. Since they don’t have to provide coverage to every Juan, Dick and Harry, they can offer better service.
Obviously, O and friends want those of us that are reasonably healthy and have a little money, to pay for those who have spent a lifetime making bad decisions.
August 16th, 2009 at 9:18 pm
When did USAA start providing medical coverage? Do they? Have they always? I have only ever used them for auto and home insurance. Its because they can be selective about who the cover that they can offer better rates and service. Since they don’t have to provide coverage to every Juan, Dick and Harry, they can offer better service.
Obviously, O and friends want those of us that are reasonably healthy and have a little money, to pay for those who have spent a lifetime making bad decisions.
August 16th, 2009 at 10:06 pm
USAA was formed to provide insurance needs peculiar to a population that moved around a lot, lived abroad and died ahead of their age group. The USG “benefit” was not intentional.
August 16th, 2009 at 10:09 pm
#4… they don’t provide traditional medical insurance. But they did, at that time anyway, offer gap catastrophic care coverage. It was actually what most people should have – $10K out of pocket deductible and no limit if something bad happened. I only had it for 3 or 4 months.
August 16th, 2009 at 10:15 pm
USAA only advertises Medicare Advantage, Medigap, and Long Term Care. Some of their small business policies might have it.
Who covers the gang bangers in the ‘hood?
August 16th, 2009 at 10:37 pm
BTW it ain’t dead because Ms. Health Bimbo said the wrong thing. The WH already threw her under the bus!
August 18th, 2009 at 5:44 pm
#5… I’ve been unhappy with USAA for expanding the pool too wide. I think my rates would be better if they stuck with the original pool concept of military officers.