Co-ops is the new word in the health care reform debate for capitulation. It’s the status quo masquerading as reform.

Paul Krugman gets at this today in his column:

And let’s be clear: the supposed alternative, nonprofit co-ops, is a sham. That’s not just my opinion; it’s what the market says: stocks of health insurance companies soared on news that the Gang of Six senators trying to negotiate a bipartisan approach to health reform were dropping the public plan. Clearly, investors believe that co-ops would offer little real competition to private insurers.

Again: if health care reform is pleasing those in power, the hegemonic structure, it’s not really reform, or at least not the reform that’s needed.

Clearly, the dropping of the public plan in favor of co-ops is not real change if insurance companies are loving it.