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Senate GOP members push health co-op rather than public-option health plan

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Kent Conrad
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It seems that the so-called "public option" may be the issue that does the most to try to get the patients of both parties engaged in the health reform debate. While Democrats in the Senate are preparing to side with some Republicans to back a plan with no government-run health insurance option, House Democrats are still fighting tooth and nail with their GOP counterparts to find any point of agreement.

Senate Finance committee members seem to have made their peace with a plan that includes not a government-run plan, but a non-profit cooperative option to compete with private insurers. These co-ops, a few of which already exist in regions of the U.S., are owned and controlled by their members. One well-established co-op, Seattle-based Group Health Cooperative, has about 600,000 members and has been in business since 1947.

Sen. Kent Conrad (D-ND), who's the leading champion of this concept, is proposing that the government provide initial start-up money to fund the cooperatives across the U.S., though they'd be required to become self-sustaining by collecting consumer premiums.

The problem with Conrad's approach is that while it might indeed work, it could take quite some time for a national co-op or set of co-ops to set up shop, as building relationships with physicians and hospitals can take quite some time, notes Karen Davis, president of the nonprofit Commonwealth Fund. A public option, meanwhile, allows the government to use the purchasing power of the Medicare system to get more providers to come on board, she notes.

Ultimately, the question none of the legislators seem to be asking, at least publicly, is whether anything but a public-option plan will do anything to pressure private insurance to change their ways. And let's be honest, that is the key reason for implementing such a plan.

Oh, and by the way, health plans, if you don't like having to compete with a government plan that could come in 20 percent lower than your best offer (see the Lewin report story in this issue), would you prefer having legislators get fed up and demand you come in lower, by law? One way or another, something big is going to change here, so shooting down the current options may not be so smart.

To learn more about this dilemma:
- read this Los Angeles Times piece
- read this Reuters piece

Related Articles:
AHIP opposes creation of government health plan to rival private insurers
Including public option plans could save U.S. $265 billion, report says
Grassley: Public option a 'deal-breaker'

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Let's set aside another distraction, a baseless, nominal, and minimal coverage by the health industry-sponsored some senators. A new Gallup Poll released late last week shows that 71 percent of Americans want health care reform including public option, with a substantial number calling for reform to come sometime this year.

A pay for outcome / value payment system, key to the deficit-neutral, might be capable of bringing all groups together.

Supporters of the agreement say it could save the Medicare System more than $100 billion a year and 'improve' care, that means more than $1trillian over a decade, and virtually needs no other resources including tax on the wealthiest.

As much as 30 percent of all health-care spending in the U.S. -some $700 billion a year- may be wasted on tests and treatments that do not improve the health of the recipients,” Thus the remaining $239 billions over a decade do not matter.
Dr. Armadio at Mayo clinic says, "If we got rid of that stuff, we save a third of all that we spend and that is 2.5 trillion dollars on health care. A third of that and that is 700 billion dollars a year. That covers a lot of uninsured people."

1. There is no need for infighting and class conflict.

2. It can satisfy revenue-neutral raised by the Republicans.

3. It is able to resolve the regional disparity.

4. It may bring the private insurers to competition, innovation.

5. The focus on 'outcome' over volume can make the practitioners more accurate and creative based on IT SYSTEM and evidence, while eliminating the additional, unnecessary care that is increasing patients' pains, frustrations, and possible side-effects.
6. It undoubtedly allows for massive medical job creation.

7. The desperate people will get back American dream.

THANK YOU !

you tell em Ann! The Repulicans are not back the public option because they are funded by the health insurance companies. It's so obvious!

Anne:
You have broken the code again. I just don't understand why more people have not figured out that it's not the doctors or the hospitals but the health insurers - (who for the most part are public companies and have a fiduciary responsibility to make money) are one of the two entities that are driving up the cost of healthcare today. The other one is big Pharma with their constant advertising of newer drugs that often do not work as well as older ones. Keep cooking Anne. I like what you are saying!

OK Anne I am not sure your pole information is either current or correct but hey...

The 30 % you mentioned is correct. Much of it is attributed to patient request and a desire by the doctors to protect themselves against litigation.

Everyone say Tort reform.

The CBO sais 50% of the increase over several decades is caused by advances in technology. So some increase above inflation is inevitable.

The core of the waste can be attributed to the end user. Most people surveyed think a doctors visit is $20 because that is their copay. To many people think the cost of health insurance if $179 a month for family coverage because that is what they pay. They do not see that it is $870 a month.

The consumer needs to be part of the process again. They need to appreciate what things cost and in some instances be willing to try less expensive potential treatments in instances where they can.

As my congressman said the best role for the government is to be the referee and call foul when things go wrong. How can they do that if they are playing the game.

A different concept from the government option would be to open up how insurance is purchased. Rather than limiting group coverage to just employers expand it beyond that so that others can pool their resources and spread risk.

Best wishes Anne.

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