Opponents of Public Insurance Option Fear Private Insurance Cannot Compete

[one...two...tree 2,762]

By Josh Marshall

You really must read this article in the Times on the battle over including a 'public option' in the new Obama health care reform bill. If you're not familiar with the lingo of this debate, the 'public option' refers to allowing the federal government to sell its own insurance plan which would compete with private health insurance providers. Think of it as a version of Medicare that everyone could buy into.

Here's the key graf from the Times piece ...

But critics argue that with low administrative costs and no need to produce profits, a public plan will start with an unfair pricing advantage. They say that if a public plan is allowed to pay doctors and hospitals at levels comparable to Medicare's, which are substantially below commercial insurance rates, it could set premiums so low it would quickly consume the market.

As Taplin suggests, these 'problems' sound remarkably like 'the point' of the whole exercise. Most of the argument here is that a big government plan would just provide the insurance 'service' much more efficiently and cheaply than private carriers. And that the private carriers wouldn't be able to make any money off selling the service any more. But this is the argument that single payer advocates routinely make -- namely, that a lot of the money that goes into private health insurance goes to paperwork, much of which is tied to finding ways to deny people coverage. That, and the need to earn profits on providing the service.

Presumably if there were other quality advantages to the private plans, the carriers wouldn't be so worried that everyone would switch to the public plan. I think I might be open to some effective scare-mongering on that front. But the private carriers don't seem to have much confidence there's much to scare people about.

http://www.talkingpointsmemo.com/archives/...e.php?ref=fpblg

[mawilson 2,133]

Think of it as a version of Medicare that everyone could buy into.

I'm all for competition, but isn't Medicare essentially bankrupt?

[w¡n9Nµ7 §£@¥€r 123]

Think of it as a version of Medicare that everyone could buy into.

I'm all for competition, but isn't Medicare essentially bankrupt?

They haven't gouged you enough, that's why

[mawilson 2,133]

Think of it as a version of Medicare that everyone could buy into.

I'm all for competition, but isn't Medicare essentially bankrupt?

They haven't gouged you enough, that's why

Right... and because Medicare worked so well, let's try Medicare on steroids.

[AlHayatZween 2]

the babyboomers are ruining everything.

[mawilson 2,133]

the babyboomers are ruining everything.

The word "babyboomer" reminds me of

[AlHayatZween 2]

the babyboomers are ruining everything.

The word "babyboomer" reminds me of

saw a youngster like that at daycare...

think i should i be worried??

[JimandChristy 1,689]

What a shame, what a shame they won't be making as much money on the back of other people's illnesses and suffering...my heart bleeds, it really does.

[mawilson 2,133]

What a shame, what a shame they won't be making as much money on the back of other people's illnesses and suffering...my heart bleeds, it really does.

And so will your pocket, pretty soon.

[JimandChristy 1,689]

What a shame, what a shame they won't be making as much money on the back of other people's illnesses and suffering...my heart bleeds, it really does.

And so will your pocket, pretty soon.

Bloody Nixon! His fault.

[one...two...tree 2,762]

What a shame, what a shame they won't be making as much money on the back of other people's illnesses and suffering...my heart bleeds, it really does.

And so will your pocket, pretty soon.

When more Americans aren't faced with financial bankruptcy because of unpaid medical bills, we'll all benefit....by up to 20 percent of the GDP. There's some real money savings.

[GaryC 7]

What a shame, what a shame they won't be making as much money on the back of other people's illnesses and suffering...my heart bleeds, it really does.

And so will your pocket, pretty soon.

When more Americans aren't faced with financial bankruptcy because of unpaid medical bills, we'll all benefit....by up to 20 percent of the GDP. There's some real money savings.

Pure fantasy. When the government gets a hold of health care, costs will skyrocket and the program will go bust just like medicare and SS are.

[Hilarious Clinton 452]

the babyboomers are ruining everything.

The word "babyboomer" reminds me of

Nice. I'm going to put that pic in my sig.

[mawilson 2,133]

What a shame, what a shame they won't be making as much money on the back of other people's illnesses and suffering...my heart bleeds, it really does.

And so will your pocket, pretty soon.

When more Americans aren't faced with financial bankruptcy because of unpaid medical bills, we'll all benefit....by up to 20 percent of the GDP. There's some real money savings.

I doubt that, Steven. The "unpaid medical bills" still have to be paid by someone, and "the rich"

don't have enough money to pay for everything. They're going to have to lower the bar to include

some of the not-so-rich.

[ready4ONE 5,400]

Since private insurance by an large sucks, due the two competing purposes of these corporations 1] providing health care to members directly competes with private insurers true purpose 2] making money, buckets and buckets of it and not caring who has to die to make the extra buck, screw em!

Private insurance is a proven loser, not sure I am comfortable with the government alternative either in some respects, but why keep backing a proven loser???