July 28 (Bloomberg) -- The Senate Finance Committee is considering a system of nonprofit health-care cooperatives that would cover 12 million people and receive $6 billion in federal startup funds, Senator Kent Conrad said.

“They say that this would very early on get 12 million” people covered, Conrad told reporters in Washington today. He said the plan could be operated on a state, regional or national approach. Actuaries have said the co-ops would become the third- largest provider of insurance in the country, he said. The Obama administration hasn’t signed on to the plan, Conrad said.

The secretary of health and human services would appoint an interim board to oversee the co-ops, Conrad said.

To contact the reporter on this story: Laura Litvan in Washington at llitvan@bloomberg.net

Last Updated: July 28, 2009 16:52 EDT