This morning on CNN, Sen. Kent Conrad (D-ND), the author of the
health care co-op proposal that is apparently gaining traction among many Democrats, argued it’s a “very successful business model.” But when host John Roberts repeatedly pressed Conrad on whether the creation of
non-profit, member-driven health care cooperatives would drive down costs for consumers, Conrad acknowledged they would not:
ROBERTS: What would they do to reduce costs? Because that is one of the central issues of health care reform.
CONRAD: Well, the important thing is they’d provide more competition. … Beyond that, I think it’s very important not to over-promise here. <...>
ROBERTS: So nothing really in driving down the costs of service then?
CONRAD: Uhhh, no. If you believe competition helps drive down costs, then they would certainly contribute to holding down costs.
Conrad stated that the purpose of co-ops is two-fold: 1) “providing additional competition,” and 2) “being an entity that is not government-run, government-controlled.” Watch it:
moreUpdated with CNN spin:
Demoractic Sen. Kent Conrad is pushing for non-profit co-ops as an alternative to a public health insurance option in health care reform legislation.
NEW YORK (CNN) — A top Democratic senator touting the creation non-profit cooperatives for health care reform said the business model has been "very successful" and "would certainly contribute to holding down" soaring health costs.
But Sen. Kent Conrad of North Dakota told CNN's American Morning Tuesday that such a plan, floated as an alternative to public health insurance, wouldn't be the chief driver in decreasing health care costs.
"If you believe competition helps drive down costs, then they would certainly contribute to holding down costs," Conrad said, referring to cooperatives — which are not-for-profit membership-run health plans.
"I think it's very important not to overpromise here. The Congressional Budget Office tells us the big levers in terms of affecting cost lie elsewhere," Conrad said. more(emphasis added)