Argument: Insurance co-ops self-sustaining, need no taxpayer support

Issue Report: Health insurance cooperatives


Sen. Kent Conrad (D-N.D.): “the intent is for the co-ops to become self-sustaining entities—supported, owned and governed by their own members.” The fact that they are self-sustaining in this way makes them, in the long-run, a very scalable model, as they can generate an independent stream of revenues. This compares favorable against a government-run public insurance option, which is dependent on taxpayer funding and the whims of government budget allocations. In this sense, co-ops offer a good competitive alternative to private health insurance companies.