Republicans and some so-called moderate Democrats are against the public plan. Why? They claim that the public option would provide unfair competition and take over from private insurance companies. These are the same people that say the government can't do anything well. Now they tell us that the government is so efficient and does things so excellently that it would provide unfair competition to the brilliantly managed health insurance industry!
These naysayers are the same people that constantly broadcast the virtues of capitalism, free markets and competition. And here is an example where President Obama wants to introduce competition and they are screaming their objections.
Ezra Klein makes the argument clear:
....... If the public plan works, then private insurance will work better as well. In this telling, the simple existence of the public plan forces a more honest insurance market: Private insurers need to offer premiums closer to their marginal cost, and they have to cut administrative costs, and they have to work on their reputation for cruelty and capriciousness. The existence of another option changes the market. Individuals will have access to private insurers, but they'll no longer be stuck with them.
What's wrong with that? Competition from the public option will improve the whole system and bring costs down. Terrific boost to capitalism!
Without the public option, there will be no true competition. The huge insurance companies will be in control. The cost of healthcare will zoom. More people will go bankrupt from excessive healthcare expenses.
There can be no true reform without a public option. If the public option can't be achieved without the complaining senators, let's get it done with a simple majority.
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