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Public Option Pivotal to Health Reform: Reich

Obama can't give in to critics

By Matt Cantor,  Newser Staff

Posted Jun 24, 2009 10:55 AM CDT

(Newser) – As wrangling over health care reform drags on, President Obama is putting the idea of a public option on the back burner. But public competition would drive private plans to offer better, less expensive care, cutting the massive costs that are hindering progress, writes Robert Reich in the Wall Street Journal. In fact, “the choice people make between private plans and a public one is likely to function as a check on both.”

The for-profit interested parties fear the public option “would squeeze their profits and force them to undertake major reforms. That's the whole point,” Reich notes. Those concerned that a public plan would be government subsidized “have their facts wrong”: Subsidies would go to families, not to the plan. Some worry a public option would really mean a government health care takeover. But that’s not true: “It’s an option. No one has to choose it.”

President Barack Obama walks on stage as he is introduced before delivering remarks on health care reform at the annual meeting of the American Medical Association, Monday, June 15, 2009, in Chicago.
President Barack Obama walks on stage as he is introduced before delivering remarks on health care reform at the annual meeting of the American Medical Association, Monday, June 15, 2009, in Chicago.   (AP Photo/Pablo Martinez Monsivais)
President Barack Obama conducts a town hall meeting on health care reform, Thursday, June 11, 2009, at Southwest High School in Green Bay, Wis.
President Barack Obama conducts a town hall meeting on health care reform, Thursday, June 11, 2009, at Southwest High School in Green Bay, Wis.   (AP Photo/Morry Gash)
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Without a public option, the other parties that comprise America's non-system of health care have little or no incentive to supply high-quality care at a lower cost than they do now.
- Robert Reich

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COMMENTS
Showing 3 of 10 comments
NewserScooter
Jun 25, 2009 4:43 AM CDT
Just me you have it right. The advantage all the other countries have over the US is that they offer poorer health care, with fewer options. And they can afford this because the US has provided the cost of their national defense for the last 50 years.
NewserScooter
Jun 25, 2009 4:41 AM CDT
Why do most children need health insurance? Insurance is a bet that the cost of something that needs to be covered by a pool is worth more then the premium. In fact such a hugh percentage of children are healthy, have very low costs. Insurance is a poor investment for 96% or more.
JonmarkP
Jun 25, 2009 4:38 AM CDT
Of course a public plan will be more effective. That's why all the other industrial nations have adopted them, that's why insurance companies are spending billions to lobby against them. The only way a public plan could be "balanced" is for the public plan to extract a 30% to 50% profit while denying claims and pre-existing conditions.
 

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