Argument: Co-ops lack scale to negotiate prices of drugs, services

Issue Report: Health insurance cooperatives


Robert Reich. “Why the Critics of a Public Option for Health Care Are Wrong”. TPM Cafe. June 24, 2009: “cooperatives would lack the scale and authority to negotiate lower rates with drug companies and other providers, collect wide data on outcomes, or effect major change in the system.”

“Q and A on Health Care Co-ops”. MSNBC. August 17, 2009: “Q: Would co-ops have enough collective bargaining power to demand good rates from providers? […] A: Some experts say co-ops would need a nationwide board to negotiate such rates on behalf of all co-ops, rather than have each group bargain on its own. Others say a nationwide board is not essential. Conrad’s Senate proposal has yet to decide the matter.”[1]