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UPDATED Reid: Co-ops Could Replace Public Option if Structured Right

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Senate Majority Leader Harry Reid often says that he supports a public option "or something like a public option." But he spoke about that a bit more specifically today:

"The purpose of a public option is to create competition, which is so important, and to create quality healthcare," Reid told reporters today.

"If we can come up with a concept of a cooperative that does just that, that is it makes more competition and makes insurance companies honest, yes, I think that would fit the bill," Reid said.

A couple things jump out about this. First, this is a bit more specific than we're used to with Reid. He's very clear here that, at least in theory, a co-op could meet all of his and the President's requirements with respect to creating competition and honesty in the insurance market.

More importantly, though, this comes a day after Obama's speech where he specifically warned liberals that he doesn't see a government-run public option as an end in and of itself. It's a tool. Reid is using very similar language to say a co-op model might serve that function as well. And since the just-released Senate Finance Committee draft provides for the creation of a co-op system, it seems pretty clear that Reid's taking the idea seriously.

Late update: A Reid spokesperson tells me "Reid did not endorse the co-op plan at today's press conference. He reiterated again today that he supports a public option but is open to interpretations of such a plan. The goals for him are lowering cost and keeping the insurance industry in check." And indeed, it does seem that other reports have overstated Reid's remarks.

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62 comments

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September 10, 2009 2:58 PM   

I fail to see what's so difficult about simply offering Medicare for All. People like Medicare. It's impossible for R's to argue against this without attacking Medicare itself.

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September 10, 2009 4:22 PM    in reply to mans_best_friend

That is sensible. But if we did that, Harry Reid would have nothing to cave in upon, and he loves showing the GOP how weak he can be.

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September 11, 2009 7:46 AM    in reply to Dogger

Reid is full of crap//It takes thousands of people and dollars and hours to ramp one up then they have to get the insurance cos to the table..That takes years...Conrad has a scandal brewing in his state for helping BC/BS work its way to being a co-op---which conrad supports.

Public option is the only thing with teeth in it...the rest are gimme's to the insurance companies...

There is no reform in co-op! BS..

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September 10, 2009 4:55 PM    in reply to mans_best_friend

I agree with you.

However, our weak-kneed politicians could not even agree that the public option could pay Medicare rates + 5% and backed off to simply "negotiated rates". Medicare for all moves in the other direction.

I'd at least like to see elegibility to buy in to Medicare at 62, same age as Social Security early retirement. Health care looks like it would be half my budget at age 64, and a good reason not to retire early. One easy way to open jobs to the unemployed is to remove barriers to retirement. With the mugging 401Ks took last year and the exceptionally high insurance premiums for older Americans, I'm sure retirements are slowing to a trickle.

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September 10, 2009 5:02 PM    in reply to condew

But Medicare rates are stupid and costs are rising at an unsustainable rate. So tell me how you are gonna fix that first. OK?

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September 10, 2009 5:41 PM    in reply to Economides

I'm sure "stupid" is a highly technical term, but the only way to hold down costs is to hold down costs, and most doctors accept Medicare rates.

This is perhaps the crux of the problem; nobody has the spine to tell insurance companies that the private tax they apply to every health care dollar is too high, let alone tell the actual health care providers that the sky is not the limit, the limit is conciderably lower. We won't even tell insurance they will have to compete with a new public option that has single-digit overhead rates like Medicare's 3%. So no competition, no price setting = no cost reduction.

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September 10, 2009 3:04 PM   

Good lord, too many cooks and all that. Ring a bell?

Could the Democrats just tow the damn line already? Robust public option or bust. I don't care how much you want to look into this idea or that- the public option is the BEST option at cutting costs, providing competition, bar none (besides say single-payer). A co-op will never fill that bill as well as the public option. So why waste our time?

The answer optics: The Dems are still scared shitless of rightwing reaction to a gov't run program. Sad and pathetic they won't even try to talk about how gov't CAN work.

Krugman is correct. "(S)ooner or later Democrats have to take a stand against Reaganism — against the presumption that if the government does it, it’s bad."

Instead, we get more weakness and watered down BS from Harry Reid.

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September 10, 2009 4:01 PM    in reply to josephcast

Isn't the goal to reform healthcare, not to make a point against Reaganism?

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September 10, 2009 4:17 PM    in reply to Dorn76

Alas. Not for everyone. There are lots of left over culture warriors who would rather see it fail than (HORRORS!) compromise. It was the same during the stimulus bill.

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September 10, 2009 4:27 PM    in reply to mans_best_friend

did you miss the speech last night.

right up front, some want single payer (applause)

we aren't getting single payer. We'll compromise with a public option. It isn't much.

there is no reasonable argument against it. There is much reasoned argument for it, see Krugman, Rich etc)

this is the middle.

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September 10, 2009 4:38 PM    in reply to Indie Pro

yep.

single payer is the solution.

public option is the compromise.

so-called co-ops are only a rebranding of defeat.

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September 10, 2009 4:53 PM    in reply to Indie Pro

The public option does not have the votes. You can rant and rave, stamp your feet, hold your breath and insist until doomsday that we need a public option. None of that will change the fact that the votes just aren't there, and unless Obama pulls a rabbit out of his hat, he will need to compromise some more.

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September 10, 2009 5:08 PM    in reply to mans_best_friend

your magic ball,I don't trust it.

your willingness to give up a fight, is not mine.

there is not a good argument against a public option.

there are many for it.

if they compromise the public option away, then I'll fight for them to compromise the mandates away.

that's the way it is.

I know my role.

I see yours.

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September 10, 2009 5:46 PM    in reply to Indie Pro

GOtta go with Indie here. He is 100 percent right on this.

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September 10, 2009 5:55 PM    in reply to theone718

Indie is right, but for whatever reason, the votes aren't there. I wish there were...but there are a number of Politicians, particularly in the Senate, who don't understand how Health Care works (because they've never had to worry about it), and will never, ever (because of ideology) vote for Single Payer.

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September 10, 2009 10:23 PM    in reply to Indie Pro

What makes the single payer or the public option unobtainable is the opposition by republicans who are all for free markets without any government intervention. Also, insurance is an expensive whore under the care of State legislature brothels and allowed to peddle their wares in the public market place for whatever price they want without the fear of law enforcement coming down upon their indiscretions and forcing them to clean up their act. It's going to take some serious re-education in Congress to get them on board to understand the issue is with the people, not commerce. Until that happens, we'll get stuck with partially-birthed aborted health care legislation that won't survive in the long run and be declared a failure by the very same people hellbent on destroying it while still in the womb.

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September 10, 2009 4:39 PM    in reply to Dorn76

It may be kinda like teaching biology.
You can't do it properly without making points against creationism.

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September 10, 2009 4:58 PM    in reply to kenga

Always wondered how you can be against teaching evolution and still be a social Darwinian, but teabaggers do it.

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September 10, 2009 10:10 PM    in reply to Dorn76

Reaganism is what we're experiencing with health care...the industry does as they damn well please and the government has a hands-off approach to resolving the issue.

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September 10, 2009 3:05 PM   

"If we can come up with a concept of a cooperative..."

Here's the problem:

No one has come up with a concepr where it "does that". Even Conrad hasn't. All that they have come up with is a co-op system that will be a boondoggle for Big Health. It's why Big Health LUVS~! the co-op boondoggle.

The ConservaDems continually going to the well to try to sell this concept ir just like Treasurey going to the well to sell the concept of Buying Toxic Assets. It's what they really, really, really want to do: hand out money to Coporate America. But when it gets shot down, they have to pull it back, repackage it, and float it again.

We're just a bankrupt party, every bit as much as the GOP.

John

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September 10, 2009 3:09 PM    in reply to tosh

"We're just a bankrupt party, every bit as much as the GOP."

I tend to agree. I don't think Dems are quite as bad. However, they are really, really close these days.

Crap, like this though- this really makes people's disdain for gov't grow. Time for all caps:

A MAJORITY OF PEOPLE APPROVE OF A PUBLIC (GOV'T RUN) OPTION!!!!!

Why does no one on the Hill pay attention to this.

Oh, yeah: $$$$$$$$$$$$$$. I forgot.

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September 10, 2009 3:38 PM    in reply to josephcast

Or--gosh, I don't know--maybe they just want to pass a frickin' bill!

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September 10, 2009 4:51 PM    in reply to converse

yes, but isn't it sad that they have to pass a bill that defies what the public wants??? the public wants a wide variety of choices including a public option (by margins of 60% to 80%). why can't OUR elected officials deliver? again the answer is: $$$$$.

the corporations are the only constituent that matters, especially for the blue dogs and others who are holding this up.

we need corporations out of politics. instead, it looks like we could very well get the opposite.

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September 10, 2009 5:05 PM    in reply to josephcast

You mean a bad bill where we all are legally REQUIRED to buy insurance at ANY price insurance companies set?

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September 10, 2009 3:42 PM    in reply to tosh

Here's one site's take. I'm not in agreement with everything on it, but it does give some information.

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September 10, 2009 4:46 PM    in reply to matyra

http://www.heritage.org

It IS information, as you say, just -in my opinion- of dubious value. http://en.wikipedia.org/wiki/Heritage_foundation
There are plenty of free-market apologists in Congress already, and Heritage is one of the sources they look to for talking points.

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September 10, 2009 6:50 PM    in reply to kenga

I knew that that foundation name was ringing some kind of alarm in the far reaches of my brain. So much for the quick google, read, and post method.

Still, if the organization with credentials like

The foundation took a leading role in the conservative movement during the presidency of Ronald Reagan, whose policies drew significantly from Heritage's policy study Mandate for Leadership
is supporting co-ops and Reid's saying that he wouldn't be completely against them, then it looks like there's a very good chance that we are going to get a reform bill passed.

Of course, I linked to one blog and when you click on the Heritage Foundation's stance on Health Care, it looks like their stance is to do something, but nothing Obama wants, which when you scan through the topics seems to mean to do nothing.

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September 10, 2009 3:14 PM   

Brillant Harry....just brillant! Harry appears to have missed the boat this morning...well..every morning!

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September 10, 2009 3:15 PM   

Thanks Chicken Harry, you just sucked the oxygen out of the room and crashed our momentum.

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September 10, 2009 3:17 PM   

Reid: I could kill effective health care reform if structured properly.

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September 10, 2009 3:19 PM   

Reid is spot on.

Obama himself gave him an invitation to say this, when he described a coop as a good idea and warned the left-wing fanatics that this not a competition to simply force the public option at any cost.

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September 10, 2009 3:28 PM    in reply to Lalo35adm

Totally. Saving money in the long run is a horrible idea. Boo to doing it right, let's go with the idea that the CBO said wouldn't save any money.

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September 10, 2009 3:25 PM   

The have the CBO score it.

I dare you.

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September 10, 2009 3:31 PM   

Every time that idiot Reid opens his mouth everything gets worse. He needs to just STFU! He has rotten ideas, he is a horrendous and ineffective leader. It speaks volumes (none of it good at all) of Senate Democrats that they keep him as leader.

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September 10, 2009 3:32 PM   

Awesome. This is real news on the public option issue, in the form of a deliberate answer from the Majority Leader.

I now await Sen. Sherrod Brown taking the airwaves to explain, with a lot more coherence, how co-ops do not in fact satisfy the goals the president laid out.

One thing I wonder about is whether Reid has set up a construct in his own mind, believing that a triggered public option, set up on a state-by-state basis, is now synonymous with a regional co-op. Hence the "structured right" comment.

It does sound on the whole like genuine senatorial compromise gibberish, so maybe it will pass!

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September 10, 2009 3:35 PM   

Harry Reid use to be a boxer. Based on his time as Majority Leader I feel pretty confident at guessing that Harry never won a single boxing match and probably took a dive before ever throwing a single punch in any fight.

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September 10, 2009 3:36 PM   

He can say whatever he damn well wants and it means exactly zero. He's living in the past. Its obvious to everyone after last night there isn't going to be reform without a public option in the final bill. Progressives will hold the line at all costs now.

The Senate Democrats need to get that through their heads.

MAKE those Democratic Senators that are against a PO vote 'NO' on cloture with a PO in the bill. With the wide support it now holds in the mind of the majority of the public (since the President's explanation of what it is and is not last night) the only reason they could possibly vote 'NO' now is that they are bitches of the health insurance industry (which we all already know).

Just expose them for what they are. If they have the balls to vote that way. My guess is they don't. Put enough pressure on them, and they'll cave.

And if they vote 'NO' anyway, at least the air we're breathing will be a little cleaner after we've tourched their asses through reconciliation.

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September 10, 2009 3:41 PM    in reply to willia451

Hate to bring math into your fantasies, but the Dems only have fifty-nine votes in the Senate. Next idea? Or do you really not want to pass a health reform bill at all?

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September 10, 2009 3:55 PM    in reply to converse

It's worse than that. At the moment they probably have no more than 47 willing to vote for a bill with a public option. This is the crux of the problem that even reconciliation won't solve. They need to corral a few more votes, and that almost inevitably means some sort of compromise.

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September 10, 2009 5:14 PM    in reply to mans_best_friend

I'd rather see back room threats than more compromise.

How about somebody telling Senator BlueDog that if he won't vote for the Democratic administration's signature issue, he will never see another earmark, nothing he proposes will ever come to a vote with his name on it, he'll lose all seats on committees, and we will find and fund somebody to run against him in the Democratic primary?

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September 10, 2009 4:00 PM    in reply to converse

No. I don't want a bill with individual mandates and fines without a PO. Do you? That is simply another screw job on the American People and total capitulation to the health insurance industry. Millions and millions of subsidised new customers for them. And the vast majority of us? Dog eat dog baby. Just like it is now. At least with a PO, you KNOW something affordable with be there for you if you really need it. And gives Progressives something to build on for the future.

And reconciliation, although a much heavier lift than a straight vote, only takes 50 votes + Joe Biden. We'll just fire the damn senate parlimentarian like the republicans did if he starts getting all knotty on us. And put one in that favors us.

If we can't get at least 50, then the democratic party is hopelessly corrupt. Just like the republicans. And we were never going to get anything worth a damn anyway.

For God's sake, grow some balls people and start holding the line hard.

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September 10, 2009 6:01 PM    in reply to willia451

So the answer is "no", you don't want a health care reform bill.

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September 10, 2009 8:19 PM    in reply to converse

How odd, that progressives always need to compromise -- corporadems and mislabeled "centrists" somehow never do.

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September 10, 2009 4:02 PM    in reply to converse

They'll have 60 as soon as Mass. appoints someone, which will happen within weeks.

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September 10, 2009 6:02 PM    in reply to wbgonne

You seriously think Lieberman will vote for cloture?

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September 10, 2009 3:42 PM   

harry reid is a nincompoop who may well lose nevada.

so i honestly don't give a shit what he says.

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September 10, 2009 3:49 PM   

Make the Co op national

govt run (not private)

and the saving to the consumer (forced to purchase a product)
must be the same or better than the public option

and the competition to the insurance industry must must be the same or better than the public option (you know, because we're forcing people to buy a product, and as the President noted, in some places there is little competition or no competition).

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September 10, 2009 4:31 PM    in reply to Indie Pro

Sometimes a name change is all that is needed. At this point the words "public option" are like a red flag. The Blue Dogs are just not going to go back to their constituents and tell them they voted for something called "public option" no matter how much their constituents might actually agree with its function and purpose. Call it a co-op but design it to do the same thing and they may just pick up the few needed votes.

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September 10, 2009 4:56 PM    in reply to mans_best_friend

Sounds good to me. However, I don't think Reid thinks this way. Nor could I see him coming up with something so effective.

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September 10, 2009 5:11 PM    in reply to josephcast

It's always in the details. Just look at the comments here. People hear "co-op" and go apeshit. It's just a name. Depending on the details, a "public option" they pass might be worthless. They've already sharply limited eligibility to only those with no other options. It's quite possible for co-ops with broader eligibility to be much better than a public option for which very few people qualify.

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September 10, 2009 5:21 PM    in reply to mans_best_friend

the proposed coops have been privately run and assigned to individual states, making the pool far too small.

The CBO says they do not come close to being a substitute for a public option.

that's why people don't like it.

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September 10, 2009 5:52 PM    in reply to Indie Pro

The key words there are "have been". There's no earthly reason they have to be so. Get past the name and look at the details of what's actually being proposed.

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September 10, 2009 4:11 PM   

A national co-op for all, called "Medicare for All'" a single payer system! Good. Harry Reid is the best example as yet of Lyndon Johnson's thought of an athlete playing without a helmet (Ford). In Reid's case boxing without gloves. Could we please get rid of this whimp. The times call for strength, not ..."well,....maybe." The older I get the better total nationalization of the whole health care industry. My combination of DOD and Medicare is close and about perfect! Let the whole country enjoy it.

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September 10, 2009 4:27 PM   

The Co-op seems to be as one pundit put it the solution to a political problem rather than the solution to our health-care crisis. It is an issue if Harry Reid cannot whip his caucus into shape and instead must drop important legislation to pick up a couple conservative Democrats, because we know no Republican, with exception of Snowe will vote for this regardless of if it includes Tort reform.

Part of me would not mind seeing a liberal revolution in the Senate or House; however, I realize the likely political consequences of that. The alternative of course is to give the Rep. Wilson's of the Congress a victory in favor of getting most of what we want into the final piece of legislation.

If after the President has twisted the arms of conservative Democrats, and acted more like LBJ, he still does not have the votes I would be in favor then of dropping the public option because we are too close to go back now. However, those Democrats that would have voted no should be challenged and replaced, and would do us all a favor if they just took off the sheep's uniform already. I don't think that moment has come yet, and still the Majority Leader of the Senate is already offering concessions. Nice work, Reid!

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September 10, 2009 4:43 PM    in reply to J. Clarence

I hear ya. I'm listening, but consider this:

there is no rasonable argument against a public option

if they kill it

for no good reason

what can't they kill next. How emboldened will they be with the rest of healthcare

and climate legislation?

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September 10, 2009 4:45 PM    in reply to Indie Pro

tha should read reasonable, not rasonable. Sorry.

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September 10, 2009 6:34 PM    in reply to Indie Pro

What would you have the President do instead? If the Public Option is the hinge that is preventing the overwhelming majority of health-care reform from passing would you have the all the legislation so far that made it out of their respective committee just drop it? And do you think Democrats will ever find the courage to risk so much again?

If after essentially threatening conservative Democrats the President cannot get the 60 votes in the Senate, it makes better sense to drop the Public Option now and insert it later than to have the entire thing fall apart.

I don't want the president or Democrats in Congress to drop the Public Option until they have exhausted every other possible option, and I do not think they are at that point yet; however, we've made too much progress now. At the end of the day this is about helping the American people and not winning a political victory.

And of course if the Public Option is taken out other modifications will have to made, such as the insurance mandate, so that it just doesn't make insurance companies even stronger.

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September 10, 2009 4:47 PM    in reply to J. Clarence

So, individual mandates and fines for not carrying health insurance, without a viable non-profit PO is ok with you? Drop the PO? And replace it with what? A private Co-op? Or just a "wish" plan? Like, I "wish" I could afford any of these crappy blanked up private plans. But since I can't, boy, it feels great to be fined anyway.

Re-think your position.

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September 10, 2009 5:23 PM    in reply to willia451

Yes, if Democrats pass a plan with no public option to cut costs, either the subsidies so everybody can afford private insurance will cost more than we can afford, or some households will be so squeezed between "must buy" and "no money" that Republicans will have an edge in 2010.

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September 10, 2009 5:52 PM    in reply to condew

that tax dollars will be funnelled to insurance companies is repugnant as hell.

Yet liberals and progressives continue to play ball, as long as there is a solid public option.

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September 10, 2009 5:35 PM   

Is it me or does ANY damn Dem who speaks about a PO have to clear up their statement later on.

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September 10, 2009 10:16 PM   

Co-ops are made up of private insurance companies. That is the whole problem and misses the point that only a separate public option can provide a competing component. If you have a Chevron, BP and Shell gas station at an intersection on three corners, adding a Chevron/BP/Shell co-op on the fourth corner does not provide competition. On the other hand, if the government opens a station and sets their own prices, you have competition. It is not a difficult concept. Those that oppose this idea, do so because they have a self interest aggenda, not because they disagree with the premise, regardless of what they say.

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