ACA Title I, Sec. 1322. Federal program to assist establishment and operation of nonprofit, member-run health insurance Issuers: “Ugly” – Unnecessary and misguided. This section sets up a whole federal system for the awarding of grants, loans and contracts to stimulate consumer run, non-profit health insurance plans with the “catchy” name of “Consumer Operated and Oriented Plan” (CO–OP) program. Does anyone who knows anything about health insurance and health plans really think that these entities will produce more effective or efficient health plans? If they are such a good thing that we need a whole new $6 billion per year federal granting organization why are there not more of them already in existence? Bad idea and another prime example of the philosophical bias replete through the ACA about how innately bad “business” and “capitalism” are for Americans. I don’t agree….I think this is largely how we got to be the only viable superpower on the world stage. This section seems to be predicated on the assumption that if you take the “profit” out of the picture health care will cost less and be more effective. I see no valid empirical data supporting this premise. I believe that the problem with health care costs is not due to profits and profit taking -it is due to the fact that there are virtually no market incentives for people to shop, use health care wisely or maintain and improve their health. Also there is no entity in the U.S. health care system that plays the role of saying …no, you don’t really need that third MRI or that back surgery, or that third stent or that new knee, (because you’re 200 pounds overweight). Multiply this phenomenon by 10,000,000 and the lack of consumption discipline and the economic consequence become pretty clear. My opinion is that this section should be repealed, particularly with its $6 billion price tag.

Please let others know about this blog and have them “follow” @Wellness Czar on Twitter for the section topics. This information is also available in summary PDF form by making a request to [email protected].