DENVER -- While the discussion of a co-op is new for most of us, for some Coloradans it’s reminiscent of how things used to be.

In the late 1990s, Colorado formed the Colorado Health Insurance Purchasing Cooperative, known as CHIP.

“It hadn't been done anywhere in the country,” said Claire Brockbank, the original CEO of CHIP.

CHIP was formed in 1995 after lawmakers passed a law in 1993 that allowed cooperatives to negotiate with insurance companies. Brockbank said around 30,000 members were involved.

“It was a product that allowed large and small employers to come together as one and buy their health insurance,” said Brockbank.

So why did it fail?

“I think it was the question of wrong time,” said Brockbank. “It was premature. We were a little threatening to health plans and that maybe was ultimately the demise of it.”

Brockbank said insurers eventually went around the co-op and offered cheaper prices to businesses, making the co-op an unneeded middle man. Now, however, Brockbank said a co-op may be just what this country needs, if certain rules are followed.

Brockbank said everyone must be required to participate.

“In fairness to insurance companies, when you can decide this month I need knee surgery and I am going to buy insurance; that doesn't work for them,” said Brockbank. “That is where you get into pre-existing conditions.”

She also said that unlike CHIP, individuals should be allowed to become members, not just businesses.

“You probably either want a Colorado specific (co-op) that can affiliate with other state specific ones or you want a national parameter,” said Brockbank.

While Brockbank believes a co-op can be successful, many disagree, including members of the Colorado Consumer Health Initiative, who believe co-ops aren't big enough to drive down the cost of insurance.

They said they will continue to fight for the “public option”.