08-20-2009, 05:27 AM | #11 | |
Senior Member
Join Date: Dec 2005
Posts: 5,996
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Quote:
And no, administrative costs aren't the only reason not to use a co-op (I don't know why you dismiss it as an irrelevant concern, though- we are talking about literally billions of dollars being gobbled up unnecessarily in administrative fees. I thought you actually cared about wasting money). Co-ops are extremely expensive to start up (Senator Conrad, the co-op proponent, has suggested start-up costs of between $4 billion and $10 billion (these are just costs to get the thing running, and not the costs of maintaining it). Furthermore, what happens if the co-op starts to crash from lack of funding/underenrollment (limiting purchasing power and the effectiveness of the co-op)/etc? Does the entire co-op go under? Does the government bail it out? Co-ops in health care don't tend to do well at controlling costs, either. Group Health Cooperative in Washington, for example, has increased its premiums by 12.3% a year since 2000 (hard to sustain; there is a reason there aren't many surviving healthcare co-ops). You tell me- why are you in favor of co-ops? You are finding yourself increasingly alone on this quest, as Republicans already bailed out on the concept. |
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