Moran: Co-ops No Substitute for Public Option

Washington, D.C., August 18th – Congressman Jim Moran, Virginia Democrat, issued the following statement today regarding the use of health care co-ops as a suitable replacement for a public option in the health reform legislation being considered by Congress.

“A public health insurance option that provides a basic level of coverage is vital to enacting real health care reform. It’s the one proposal being discussed that would provide market competition, squeezing some of the hundreds of billions spent annually on health care not going towards the delivery of medical services.  The lack of a public option is one of the principal reasons our nation pays $7,900 a year per person on health care yet produces a shorter life span than nations that spent half that amount. 

“A co-op plan, however, is no substitute for a public option.  Experts believe you need roughly 500,000 people to join before a co-op could viably negotiate with health care providers.  Start-up costs are high and it can take years, even decades, to establish a network that is competitive with private insurers.  Public cooperatives are currently authorized in many states and used with some moderate success. They should obviously continue to be an available alternative, but they are not a substitute for a national public plan option.”

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