Morning Bell: Don’t Let Co-ops Become a Trojan Horse

Conn Carroll / August 06, 2009

According to today’s Washington Post, the Senate Finance Committee will soon produce a health care plan that rejects “a government-run health insurance plan in favor of a network of member-owned cooperatives.” More commonly referred to as “co-ops”, these organizations actually already have a long and proud tradition in many sectors of the U.S. economy, including health care. But Americans must be wary that our nation’s co-op tradition does not become a vehicle for government-run health care.

To some, the word “co-operative” may have a slight Bolshevik whiff to it, but actually a private co-op is nothing more than private individuals exercising their right to voluntarily self-associate. From farm bureaus to barn-raisers, private co-ops are part of American society. In the realm of health care, a group that organizes coverage provided by private insurers could be structured as a co-op. Or the health insurer itself could be a co-operative owned by its member policyholders. Those kind of insurance companies are called mutual insurers.

Understood in this manner, co-ops have far more to do with Edmund Burke and little platoons than with Leon Trotsky and manning the barricades. And they can be part of the health care solution.

But, don’t be fooled; Burkean little platoons are not what the Obama Administration and its allies in Congress have in mind. In liberal Washington today, leaders such as Sen. Chuck Schumer (D-NY), are talking up co-ops that would be: (more…)