Thought experiment: What precisely would Ins Co do to "compete" with Co-ops?

patrice

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Tue Aug-18-09 08:47 AM
Original message

Thought experiment: What precisely would Ins Co do to "compete" with Co-ops?

Edited on Tue Aug-18-09 08:52 AM by patrice

Can Ins Co actually LET co-ops survive? Is it even possible for them to co-exist?

Don't Ins Cos HAVE to kill Co-ops, because good co-ops would cut into profit margins, thus necessitating more Ins Co draconian recisions and denials of claims, thus making co-ops more popular?

What if Ins Co cuts staff and streamline's processes to meet the Co-op competition? Without staff and WITH generic claims processes, doesn't Ins Co profit margins go down because Ins Co ends up covering more services?

A lot of what ifs, I know, just trying to imagin if it's even possible for two such different economic entities to co-exist.

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baldguy

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Tue Aug-18-09 08:56 AM
Response to Original message

1. Nothing.

Co-ops would not be insurance providers in competition with private insurance companies. They would act as insurance brokers for the private insurance companies.

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rurallib

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Tue Aug-18-09 08:57 AM
Response to Reply #1

2. bingo. Co-ops will buy insurance from the insurance companies

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patrice

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Tue Aug-18-09 06:32 PM
Response to Reply #1

5. Oh. So these Co-ops aren't like Credit Unions or a farmers' co-op . . . ?

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RaleighNCDUer

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Tue Aug-18-09 09:45 AM
Response to Original message

3. If insurance companies are fighting co-ops, it is only to draw attention

to the co-ops, which will encourage people to support the co-ops under the aegis of 'the enemy of my enemy'. The REAL enemy to the insurance companies is the strong public option or single-payer, which would actually do what your post claims co-ops would do.

Co-ops SUPPORT the insurance industry. The 'fight' against co-ops is just misdirection.

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rucky

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Tue Aug-18-09 09:48 AM
Response to Original message

4. Co-ops can exist right now.

And if they were viable, wouldn't we be seeing alot more of them around? I have no idea what new legislation would have to offer.

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