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EDITOR OF REDSTATE

Co-Ops are the Public Option By Another Name

You are going to hear a lot of talk in the coming weeks about co-ops. The Obama administration is signaling that the “public option” may not be needed in the healthcare plan.They are retreating to “co-ops”. Friends, a cooperative healthcare device is the public option just with a better poll tested name.Francis noted this morning that “co-ops … will be functionally indistinguishable from a public option because they will similarly benefit from free capital, grabbed from the taxpayers.” In other words, the referee will begin playing the game and, like with the public option, co-ops will kill off private insurance.The White House says this is to introduce competition into the market. Here’s a big rule in life, though: government cannot compete with private business when government is also writing the rules.As Francis noted:

These people aren’t proposing to introduce competition at all. They’re proposing to introduce supply. (If Obama, Pelosi and Waxman actually reasoned that too much supply makes prices fall, they can each have a gold star.)But the market isn’t adding new supply today, because none is needed. Indeed, if it were legal to produce new lower-cost products without some of the features mandated by current laws, the market would produce that supply overnight.

Do not believe that the public option is going away. Do not believe that the Democrats are going to give up on universal healthcare. They are not. They are going to change the language and keep the same goal and plan. It may take them longer, but they will continue pushing forward.Now we are at the hour of danger. Republicans, wanting to appear reasonable, might cut a deal and go with co-ops. If they do, they are voting for a government take over of healthcare.Keep the pressure up.

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