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View Diary: I guess Rahm doesn't read the Organizing for America healthcare horror stories (197 comments)

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  •  A history lesson from Washington, DC (2+ / 0-)
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    3goldens, juancito

    In the 1980s, I was a member of Group Health Association of Washington, DC. It was a cooperative run by members. The care was excellent medically (in my judgment as a physician) and also in the way patients were treated. My wife was a member since her birth, as were our two children. We might have chosen to remain members of GHA throughout our lives, if the coop had survived financially. In the late 1980s, it was unable to make ends meet and merged into Kaiser-Permanente, a nonprofit corporation.

    At the time that GHA failed financially, I heard talk of too-generous benefits and insufficient fees. It was said that the sickest patients tended to stay with GHA, while healthier folks switched to the less costly Blues. If there is a problem with health cooperatives, I suspect the history of GHA points it out.

    Provider organizations governed by members have trouble holding down costs. In the 1980s in Washington, DC, if my memories are correct, the private insurers won the competition against the health cooperative.

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