States Are Leading the Way on a Public Health Insurance Option

The new state level public option plans attempt to decrease health care costs by paying lower rates to hospitals, doctors and other medical providers than private insurance companies do. “The unifying theme among the three states is essentially using the power of the state government to try to lower premiums for insurance consumers,” says Sabrina Corlette, co-director of the Georgetown University McCourt School of Public Policy’s Center on Health Insurance Reforms.

 The 1st public option health plan in the U.S. struggles to gain traction

With prospects dim for the U.S. to adopt a single-payer "Medicare for All" program, health care reform advocates turned instead to an insurance plan designed by the government that could compete with private insurance plans sold on the health care exchanges. The idea behind this "public option" is that it could ultimately expand health care access by making a lower-cost plan available to consumers.

 The Public Option Is Not an Easy Fix for Health Care

Although a public option stands a better chance of passing in Congress than Medicare for All, it won’t be free of controversy. As in Washington and Colorado, what would be politically acceptable is unlikely to deliver the market transformation that some advocates predict.

 The public option is now a reality in 3 states

We’re about to learn a lot about how a public health insurance option actually works in the US.

Medicare for All is Superior to the Public Option

A public option would increase premiums for those with major illnesses. Private insurers would siphon away healthier persons from the general insurance pool by offering inexpensive but noncomprehensive plans, plans designed to appeal to those with few medical needs.

Medicare For All Or Public Option: Can Either Heal Health Care?

The United States has serious health care problems: More than 27 million uninsured people, costs that are growing faster than income, and a staggering $37 trillion of unfunded liabilities in the Medicare program. Perhaps most alarming: The US ranks lowest among developed nations in avoiding preventable deaths, despite its world-class resources and medical technology.

Medicare for All? A Public Option? Health Care Terms, Explained

The idea is that the government might be able to offer a more affordable option for people, which could push down prices in the private insurance world.

Public Option Kills Private Insurance

The public option would further stratify America’s health-care system—as it has done in other countries, where only the lower and middle classes suffer the full brunt of inferior single-payer care.

The Difference Between a ‘Public Option’ and ‘Medicare for All’? Let’s Define Our Terms

An advantage of a public option, at least politically, is it would preserve more choice for individuals, who could stick with a private plan if they prefer. That would make it less disruptive than a single-payer plan. A downside is that keeping lots of different insurance options could undermine one of the goals of a single-payer system, a simpler approach that would involve less money tied up in paperwork and insurance company profits.

The Myth of the ‘Moderate’ Public Option

Beyond fiscal considerations, the public option would quickly displace employer-based and other private insurance. This would force some private insurers to exit the market and encourage greater consolidation among remaining insurers. Consumers seeking coverage would be left with fewer insurance options and higher premiums.