Team Sarah Review Board Findings Page 36 Co Ops

Page 36 paragrah 3 Chairman's Mark: $6 billion fund for creation of multi state CO OP insurance providers for individual and small group markets.

Pages 37-39. This section of the Bill deals with Co Ops starting at the end of page 36. Baucus calls this Co Op program (The Consumer Operated and Oriented Plan Program and the language in this draft bill is very vague but I will do my best. CO-OP grantees would compete in the reformed individual and small group insurance markets.Here are the highlights in a nutshell.

1. Six 6 Billion will be allocated to foster the creation of non-profit, member-run health insurance companies that serve individuals in one or more states. These funds will be either grants or loans authorized by the Secretary of HHS.

2. Co-ops must be non profit

3. Cannot be sponsored by government agencies or insurance companies.

4. All insurance sold must be to small business owners as defined by state law typically 50 or less employees and to individuals.

5. Co-ops will not be able to band together to negotiate with providers but may band together to negotiate with businesses to sell goods and services such as computers and actual services.

These Co_ops will be taxed exempt and would be requires to use any profits for lowering premiums, improve benefits, or for other programs intended to improve the quality of health care delivered to members.

That's it folks. Like I stated, the language is very vague and there are no specifics such us who will be creating these co-ops, how will they do it, or what they will look like. The only thing we know for certain is the Secretary of HHS will be the one approving these grants and loans for a vague program. There are more questions than answers,

Another noteworthy fact: Grant and loan awards will be made by the Secretary of HHS in consultation with and advisory board chaired by the Secretary of HHS or his or her delegate and the other members appointed by the Majority Leader of the Senate (four members), the Minority Leader of the Senate (three members), the Speaker of the House of Representatives (three members) and the Minority Leader of the House of Representatives (three members).

Findings: Since grants and loans will be awarded by the Secretary of HHS with recommendation from this advisory board made up of legislators from both houses, they are subject to extreme lobbying efforts by special interest groups seeking to profit from the allocated funds. The potential for corruption cannot be ignored.