Andrews questions co-ops as Baucus embraces them

by: Jason Springer

Thu Sep 17, 2009 at 02:30:00 PM EDT

House Speaker Nancy Pelosi, in her opening remarks, vowed that health reform would provide choices and noted, "I believe a public option is the best way to do that."

Others pressed further, trying to take down the proposed alternatives.

Democrat Rob Andrews (D-NJ) prodded Yale professor Jacob Hacker, a proponent of reform, on ways in which co-ops would not be effective.

Hacker said it's difficult to create a large enough provider network with co-ops and declared they have "little chance of success." He said the public option is better because there's a "presumption of participation." In other words, there would likely be more people who participate; it would guarantee a larger pool.

But Baucus, in what appears to be a doomed attempt to achieve bipartisanship, favors a system of regional, consumer-run insurance cooperatives over a public option.

Health care co-ops have been tried, and most have failed. And it's doubtful any could recruit enough members to compete aggressively with the insurance companies in negotiating cost savings with pharmaceutical companies, hospitals and physician groups. Only a single public option would have that clout.