Applying Cooperative Solutions to the Nation's Health Care Problem: A Credit Union Opportunity?

The news cycle is dominated by the multiple efforts in Washington DC to tackle the critical issue of health care. At present, health care costs represent 16% of our nation’s economy. As the President, different factions within Congress, and private companies continue to wrestle with an ever-growing list of solutions, one lawmaker continues to push for the alternative of a cooperative model.

In a recent interview with NPR, Senator Ken Conrad (D-ND) explained why health co-ops need to be part of the overall national health care solution: “I believe they’re a good idea because they can provide competition to for-profit insurance companies, and one of the things we need in the system is more competition.”

Sound familiar?

Those opposing Conrad’s plans have characteristics and make arguments that credit unions have also seen before: private competitors upset that they will not be able to offer the same level of service while protecting their shareholders’ profits. Additionally, some in Congress are taking elements from both private and cooperative approaches to provide a government-managed option.

But Conrad’s position is that cooperatives are a stronger, better solution because “they are not for profit and will provide competition for the insurance companies. On the other hand, it meets some of the objections from others who don’t want a government-run plan, because co-ops are membership-run and membership-controlled, not government-controlled.”

Like credit unions, health cooperatives are nothing new, but have a small share of the health care marketplace compared with private insurance companies. They return any money left at the end of their fiscal year back to the organization, and of course, participant members get a vote on how the organization operates.

The Credit Union Opportunity

Credit unions have the experience, trust, resources, and infrastructure to be valuable partners in creating or supporting health care cooperative solutions. Credit unions also have a built-in audience who understand cooperative values and who need high-quality health care options that are affordable.

Senator Conrad’s goal is to stimulate the development of health insurance cooperatives owned and run by members. Isn’t this the kind of effort that the credit union system should enthusiastically support – politically and financially?!?!?

Click here to read NPR’s full article on health care cooperatives and Senator Conrad’s efforts to support them.

Click here to contact Senator Conrad directly.