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Sun. Nov 22, 2009

The Not So Public Option

The so called public option is actually neither public nor much of an option. Yet it appears that the form and/or presence of this so called “public option” is what may make or break health care reform. I’m sure you’ve heard both sides of it.

Either…

The public option will provide needed competition that will force private insurers to be more efficient and cost effective, while offering consumers true choice in health insurance, and finally covering the tens of millions of Americans who have no insurance.

Or…

The public option will provide unfair competition that will force private insurers out of business, and lead to an eventual “socialist” single payer health care system where all your health care decisions are made by the government.

Both sides appear to have read nothing at all about the actual public option included in the bills so far. Because both views above are entirely wrong.

Who will be eligible to purchase the public option as it is structured (i.e., watered down) now? If you are self-employed and have been faced with the astronomical prices in the individual market, you will be eligible for the public option. Same thing if you are unemployed, if you can afford it. And if you work for a small business with a payroll of less than $500,000 per year who does not provide you with health insurance, you will be eligible.

Who is not eligible for the public option? Everyone else. That’s right, if you have insurance through your employer now, the public option will not be available to you. At all.

What, you say? You thought if you had a crappy and/or overly expensive policy now, that you would have a new consumer choice that might benefit you and your family? Silly voter. No, you can’t have it. At all.

In fact, all those times we were told “if you’re happy with the insurance you have now, you won’t have to change a thing,” they should have been telling us something else, like, the truth:

“If you have insurance now, you will not be allowed to change a thing. You are banned from accessing this public option.”

The Congressional Budget Office has estimated that about 6 million Americans will be eligible for the public option in its current form, and perhaps 4 million might end up actually using it. Slightly more than 1% of the over 300 million Americans.

But here’s the real kicker, to me. Along with this public option come mandates. Individuals must get coverage, either through their employer or through the public option, or face a financial penalty at tax time.

However, some Congress Critters say they will only vote for reform if states have the right to “opt out” of this public option. And I can just see Georgia’s Republican Governor and Republican Legislature saying to me:

“Reid, you have now have a mandate to get insurance. But you can’t have the public option, Georgia is opting out.” Leaving me looking at the individual market where they currently want over $35,000 a year to cover me and my wife.

In other words, leaving me just where I was before anyone in DC ever mentioned the words “health reform.” Gee, thanks. Helluva job, gang. Send the insurance lobbyists a box of cigars for doing their jobs so freakin’ well.

The so called public option is actually neither public nor much of an option, if states can opt-out. Yet the debate hinges on it as if it was the whole ball game. In reality, it’s the size of a marble in the middle of a football field.

Nearly invisible, and not available to 98% of Americans.