My analysis for today will have to stray a bit away from the numbers as the statements made by Congressman Wu are not verifiable for the most part. I’ll try to use some solid logic in place of numbers and references where necessary.
The America’s Affordable Health Choices Act also creates a public health insurance option. The public option will operate on a level playing field, and will be subject to the same market reforms and consumer protections as private plans in the exchange. And, the public option will be self-sustaining – financed only by its premiums.
- Level playing field? How on earth can a private business ever be considered to be on a level field with a public entity that has no concern for remaining solvent because it can raise taxes or print money at will to support itself? It’s a little like saying a Walmart store is on a level playing field with the local mom and pop stores (except that Walmart at least has to remain solvent and create profits to survive in the end). Being subject to the same market reforms and consumer protections means nothing since the government will be making the rules. To continue the Walmart analogy, it would be like Walmart being able to dictate what products the local small businesses could sell, to whom they could sell it, and at what price…all while “competing” with them.
- If the government really wants to level the playing field, perhaps they should start by removing the onerous layers of regulation that are making it impossible for new insurance companies to come on to the scene. This would cost taxpayers next to nothing (and might save a few dollars) and would level the playing field between the major insurance companies and startups that would finally be able to enter the market to compete, thus reducing costs through true competition.
- The idea that the public option could be sustained only by it’s premiums is pure fancy. I can think of no government agency or program that is self-sustaining as every single one is subsidized by continually increasing tax revenue (If you can think of any, please feel free to comment). Why on Earth would anybody believe that the government is suddenly going to be capable of making this happen?
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Tags: Health Care, HR 3200, HR 3962
