Rep. Jim Cooper (D-TN) used to support a public option for a health care. But now he's become an advocate of the alternative put forward by health interests and his fellow Blue Dogs: non-profit health care cooperatives.And to make the case, Rep. Cooper says we should look to the model of our country's rural electric co-operatives. As he told MSNBC yesterday:
"A co-op is really used over three-quarters of the land area of America so we buy our electricity that way," said Cooper. "It's a creature of the New Deal. It's worked really pretty well over all the country for 70 or 80 years. It's owned by the customers; it is not owned by the government. It works. It works real well."But Rep. Cooper hasn't always been so enthusiastic about the rural electric co-op model. In fact, just last year, Cooper published an article in the Harvard Journal on Legislation [pdf] that blasted the rural electric co-ops, which he argued had "turned away from their historic role" as pro-consumer organizations and had "taken on deeply troubling anti-consumer behaviors."
Entitled "Electric Co-Operatives: New Deal to Bad Deal?", Rep. Cooper's piece chronicles a list of failings of the electric co-op system. Among the biggest problems he finds:
* Many co-ops have turned away from their public interest mission, "acting distressingly similar to for-profit businesses," in some cases becoming "wealthy power companies." (p. 354).
* One result of the for-profit mentality is that the co-ops, Cooper argues, have cheated consumers out of money: "$3 billion to $9 billion" in capital credits that should be refunded to consumers (p. 375). Tennessee Valley Authority co-ops "have refused to refund any member equity" (p. 340).
* The electric co-ops have also "tried to hide information from their members ... Free of member scrutiny, co-op managers have often failed to serve their members' interests." (p. 339)
* Many co-ops are poorly run: "Co-op board members sometimes display astonishing ignorance of co-op business," argues Cooper, "but are insulated from liability for their decisions due to the co-op's not-for-profit status" (p. 362).
* Co-ops lack regulatory oversight: "Sarbanes-Oxley requirements for independent directors or audit committee experience do not apply," Cooper warns. (p. 362). Lax oversight has led to dozens of scandals: For example, "A suburban Fort Worth co-op borrowed a billion
dollars to buy a golf course, Westin hotel, and shopping mall--then declared bankruptcy" (p. 341).
* Electric co-ops have created their own powerful political operations who "blame government for new regulations" (p. 355). They also find themselves at odds with the public interest mission of other parts of government, such as lobbying against clean energy legislation.
Rep. Cooper proposes fixes for some of these problems in his article, but not for others. Many seem to mirror problems our country has had with health co-operatives in the past, which have been subject to similar political and economic pressures.
Excellent article, Chris.
Blue Dogs are even as two faced as their Republican Masters.
These people were the first to attempt to obstruct the Public Option and in doing so gave birth to the opponents of health care choice that we see deployed at town hall meetings shouting and making fools of themselves.
If reform fails in any way, these are the people who should be held responsible even more so than the Republicans.
They are a cancer.
August 18, 2009 6:50 PM | Reply
NO CO-OP'S! A Little History Lesson
Young People. America needs your help.
More than two thirds of the American people want a single payer health care system. And if they cant have a single payer system 76% of all Americans want a strong government-run public option on day one (85% of democrats, 71% of independents, and 60% republicans). Basically everyone.
Our last great economic catastrophe was called the Great Depression. Then as now it was caused by a reckless, and corrupt Republican administration and republican congress. FDR a Democrat, was then elected to save the nation and the American people from the unbridled GREED and profiteering, of the unregulated predatory self-interest of the banking industry and Wallstreet. Just like now.
FDR proposed a Government-run health insurance plan to go with Social Security. To assure all Americans high quality, easily accessible, affordable, National Healthcare security. Regardless of where you lived, worked, or your ability to pay. But the AMA riled against it. Using all manor of scare tactics, like Calling it SOCIALIZED MEDICINE!! :-0
So FDR established thousands of co-op's around the country in rural America. And all of them failed. The biggest of these co-op organizations would become the grandfather of the predatory monster that all of you know today as the DISGRACEFUL GREED DRIVEN PRIVATE FOR PROFIT health insurance industry. And the DISGRACEFUL GREED DRIVEN PRIVATE FOR PROFIT healthcare industry.
This former co-op would grow so powerful that it would corrupt every aspect of healthcare delivery in America. Even corrupting the Government of the United States.
This former co-op's name is BLUE CROSS/BLUE SHIELD.
Do you see now why even the suggestion of co-op's is ridiculous. It makes me so ANGRY! Co-op's are not a substitute for a government-run public option.
They are trying to pull the wool over our eye's again. Senator Conrad, if you don't have the votes now, GET THEM! Or turn them over to us. WE WILL! DEAL WITH THEM. Why do you think we gave your party Control of the House, Control of the Senate, Control of the Whitehouse. The only option on the table that has any chance of fixing our healthcare crisis is a STRONG GOVERNMENT-RUN PUBLIC OPTION.
An insurance mandate and subsidies without a strong government-run public option choice available on day one would be worse than the healthcare catastrophe we have now. The insurance, and healthcare industry have been very successful at exploiting the good hearts of the American people. But Congress and the president must not let that happen this time. House Progressives and members of the Tri-caucus must continue to hold firm on their demand for a strong Government-run public option.
A healthcare reform bill with mandates and subsidies but without a STRONG government-run public option choice on day one, would be much worse than NO healthcare reform at all. So you must be strong and KILL IT! if you have too. And let the chips fall where they may. You can do insurance reform without mandates, subsidies, or taxpayer expense. Healthcare reform should be 100% for the American people. Not another taxpayer bailout of the private for profit insurance industry, disguised as healthcare reform for the people.
God Bless You
Jacksmith — Working Class
Twitter search #welovetheNHS #NHS Check it out
(http://krugman.blogs.nytimes.com/2009/07/25/why-markets-cant-cure-healthcare/)
August 19, 2009 1:37 AM | Reply
Rep. Cooper is in deep trouble in his own very Democratic district. Hundreds of pro-public option and pro-health care protesters gathered outside of his office in Nashville this week to protest his move away from the public option. I have no idea why he is so opposed to the public option. Nashville is a liberal city.
August 22, 2009 4:34 PM | Reply