The public option was derailed in the 2009-2010 debate over healthcare reform partly because of opposition from the insurance industry, which didn’t want to face competition from a government program akin to Medicare or Medicaid. In the place of the public option, the legislation allowed for cooperatives, which have largely been a disaster.
Co-ops have collapsed in recent years because they weren’t as well capitalized as large insurance companies like Anthem, Aetna, Cigna, Humana and UnitedHealth Group nor do the co-ops have experience providing benefits. Most health insurers have also faced a sicker population of patients than they expected and have lost money when they’ve paid out more medical claims than anticipated. For the full article click here
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