The Problem With The Public Option Is That It Lowers The Cost Of Health Insurance

by: Chris Bowers

Tue Jun 30, 2009 at 11:29


The main goal of health care reform is to lower the cost of health insurance. Apropos, Olympia Snowe thinks that the problem with a public health insurance option is that a public option would... wait for it... lower the cost of health insurance:

In an Associated Press interview in Portland, Snowe said it would be unfair to include a government-run health insurance option that would take effect immediately.

"If you establish a public option at the forefront that goes head-to-head and competes with the private health insurance market ... the public option will have significant price advantages," she said.

Well, duh. That is the whole point. You can't lower the price of health insurance unless you start offering lower-priced health insurance. It's a tautology.

So, naturally, during the fight to lower the price of health insurance, so-called moderate Senators think that the problem with the public option is that it would... lower the price of health insurance. While it may be news to so-called moderate Senators, protecting the crappy products of large corporations is not their job description.

It is pretty amazing that many moderates and industry figures are actually arguing that the problem with including a public option in health care reform legislation is that a public option would lower the cost of health insurance. Clearly, they have a different view of the purpose of health care reform than most Americans.

Chris Bowers :: The Problem With The Public Option Is That It Lowers The Cost Of Health Insurance

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Maine (4.00 / 1)
Maine as one of the strongest single payer movements in the country. It is breath taking how little regard for constituent opinion these senators have.

When was the last time ... (4.00 / 1)
politicians gave a crap about their constituents? .. Dennis K?  Bernie Sanders? .. How many others?

[ Parent ]
Keith Ellison (4.00 / 1)
He's done OK by me.

"It sounds wrong...
     ...but its right."


[ Parent ]
Keith Ellison (0.00 / 0)
is AMAZING. Man I wish he was my congressman.  

[ Parent ]
And that's why (0.00 / 0)
the greatest danger of the public option is that the "reform" plan will stack the deck against it, putting it at a severe disadvantage (a disadvantage that may exist regardless given private insurance's ability to cherry-pick customers), thereby actually hurting the push for single-payer.


You mean just shut em down without any (0.00 / 0)
opportunity to rip off a few billion more before they are forced to cut their costs?

This is the line in the sand.  At least it had better be.   If Obama and the Democrats get away with this, just what is the point?  

They're asking for another four years -- in a just world, they'd get 10 to 20. ~~ Dennis Kucinich  


Poor, brain-addled Olympia Snowe (4.00 / 3)
and so many of her ilk are still under the illusion that the healthcare "marketplace" is already a competitive environment where companies vie to offer the best service at the lowest cost. When the reality is this:
"94 percent of insurance markets in the United States are now highly concentrated, and insurers are thriving in the anti-competitive marketplace"

(HT: TPM)

Insurance companies = rentiers (0.00 / 0)
This is feudalism, not capitalism.

[ Parent ]
Serfs (0.00 / 0)
Let us eat cake.

[ Parent ]
The cat is coming out of the bag (0.00 / 0)
In the last couple of weeks we have had testimony to Congress revealing that in the credit card industry people who pay off their balances each month are known as 'free loaders'.

And in the health insurance business that actual payouts of covered claims are called 'medical loss'.

At one point in time credit and insurance were services for which providers charged a fee. And particularly for the former were controlled by regulation in the form of usury laws. Deregulation simply flipped that service model on its head, now the money is to be made by extending credit to people with bad credit and offering health coverage to people who don't need it.

I knew we were in trouble when American Express upended its whole business model, back in the day you were not even allowed to carry balances from month to month, now they continually badger you to 'go Blue', i.e. start paying interest on carried balances. 'Service' has been mutated into 'exploitation'.


gee.... (0.00 / 0)
so they're saying "we don't want competition because it lowers prices, impacting our bottom line"

As you say, Chris--duh..   Any college freshman who's taken Econ 101 could tell us that's the whole point of competition--to keep prices down.  

If money didn't make its own Justice, I'd almost say these guys are digging holes, that a properly disinterested DOJ and Court could prosecute (either using existing anti-trust statute, or maybe even criminally, in cases like the LA dumpings)


Cover the uninsured (0.00 / 0)
Sorry, the number one priority is, or should be, to cover the uninsured.  A second priority is to eliminate the insurance scams such as "pre-existing illnesses", huge discounts for large employers, failure to cover individuals.  Of course, better health care and the ability to change jobs is also up there.

There is way to much swiss cheese here.  Holes everywhere.  The oddest thing is that filling in the holes actually saves money.


I agree (0.00 / 0)
The most expensive health insurance is, undoubtedly, the best health insurance. Rarely does one see such rapier-like insights from a sitting US Senator. I may move to Maine simply for the honor of living in the State that sends Sen. Snowe to DC. She deserves several robust rounds of applause in the public square, really she does.

 

"It sounds wrong...
     ...but its right."


so tired (4.00 / 1)
of these rotten bastards

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