Robert Reich: Why the Critics of a Public Option for Health Care Are Wrong

[marmar]

Tuesday, June 23, 2009
Why the Critics of a Public Option for Health Care Are Wrong


Without a public option, the other parties that comprise America's non-system of health care -- private insurers, doctors, hospitals, drug companies, and medical suppliers -- have little or no incentive to supply high-quality care at a lower cost than they do now.

Which is precisely why the public option has become such a lightening rod. The American Medical Association is dead-set against it, Big Pharma rejects it out of hand, and the biggest insurance companies won't consider it. No other issue in the current health-care debate is as fiercely opposed by the medical establishment and their lobbies now swarming over Capitol Hill. Of course, they don't want it. A public option would squeeze their profits and force them to undertake major reforms. That's the whole point.

Critics say the public option is really a Trojan horse for a government takeover of all of health insurance. But nothing could be further from the truth. It's an option. No one has to choose it. Individuals and families will merely be invited to compare costs and outcomes. Presumably they will choose the public plan only if it offers them and their families the best deal -- more and better health care for less.

Private insurers say a public option would have an unfair advantage in achieving this goal. Being the one public plan, it will have large economies of scale that will enable it to negotiate more favorable terms with pharmaceutical companies and other providers. But why, exactly, is this unfair? Isn't the whole point of cost containment to provide the public with health care on more favorable terms? If the public plan negotiates better terms -- thereby demonstrating that drug companies and other providers can meet them -- private plans could seek similar deals. .........(more)

The complete piece is at: http://robertreich.blogspot.com/2009/06/why-critics-of-public-option-for-health.html

[Ilsa]

1. The insurers are certainly able to contract for healthcare

services in large economies of scale.

[TahitiNut]

2. But, but, but ... the majority would CHOOSE the public option! Oh woe is they!

I find that pearl-clutching to be laughable insofar as the total imbeciles deceived by it. God FORBID that people have a CHOICE that they PREFER!!

Insane.

[snappyturtle]

3. K&R

:kick: