Comments on: Looking For Solutions http://www.healthinsurancecolorado.net/blog1/2009/04/15/looking-for-solutions/ Research and discussion of the Colorado health insurance industry and the healthcare crisis in America. Tue, 16 Mar 2010 22:14:50 +0000 http://wordpress.org/?v=abc hourly 1 By: Don Levit http://www.healthinsurancecolorado.net/blog1/2009/04/15/looking-for-solutions/comment-page-1/#comment-13111 Don Levit Thu, 16 Apr 2009 18:55:19 +0000 http://www.healthinsurancecolorado.net/blog1/?p=1105#comment-13111 Louise: I think it is a good idea for there to be a serious competitor to the commercial insurers. One has to wonder why that serious competition has not materialized in the private sector itself? That being the case, we need not reinvent the wheel or even pass an Act of Congress. Congress acted about 80 years ago, when it provided for tax-exempt insurers, through the 501(c)(9). In order to fully earn its tax-exempt status, this insurer must set itself apart from the other insurers already providing coverage. If it is unable to do so, it will lose its tax-exempt advantage, as many Blue Cross and Blue Shield organizations have forfeited. According to the regulations, a 501(c)(9) insurer must operate differently than its commercial counterparts, including offering unique products. The opportunity for innovation is there. Now, that's REAL competition! Don Levit Louise:
I think it is a good idea for there to be a serious competitor to the commercial insurers.
One has to wonder why that serious competition has not materialized in the private sector itself?
That being the case, we need not reinvent the wheel or even pass an Act of Congress.
Congress acted about 80 years ago, when it provided for tax-exempt insurers, through the 501(c)(9).
In order to fully earn its tax-exempt status, this insurer must set itself apart from the other insurers already providing coverage.
If it is unable to do so, it will lose its tax-exempt advantage, as many Blue Cross and Blue Shield organizations have forfeited.

According to the regulations, a 501(c)(9) insurer must operate differently than its commercial counterparts, including offering unique products.
The opportunity for innovation is there.
Now, that’s REAL competition!
Don Levit

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