The Public Option Explained

THE PUBLIC OPTION
This is national health insurance run by the U.S. government. Whether it is a National Health Insurance Corporation in the model of Fannie Mae and Freddie Mac - a public corporation overseen by Congress - or a public corporation run directly by the Executive Branch, or co-ops funded by, and (presumably) overseen, by the government, the public option insurers will only be as independent or efficient as their appointees or regulators.

Either the public option or the Co-op model would be subject to the same political interference that led to the collapse of both stockholder-owned corporations chartered by Congress. Fannie Mae Wikipedia entry.

MANDATORY INSURANCE
All four plans now considered in the House require mandatory insurance for every citizen. This has great profit potential for private insurers. And it would be for government insurers, too, except that government insurers will provide low-cost or no-cost insurance for specific groups at a tremendous cost to taxpayers.

These exemptions or subsidies form the backbone of government healthcare. The government will provide insurance for those who can't insure (the poor) and those who won't insure (young adults who don't anticipate medical crises and students). And illegal aliens, the vast majority of which are not ensured through an employer.

Although none of the four current bills being considered specifically provide for coverage for illegal aliens, there is a strong likelihood that court cases would, as the 9th Circuit previously ruled, be in favor of coverage for non-citizens.

All these groups are the very people who have elevated the cost of health care resulting in the explosive increase in the cost of health insurance. This is largely due to the overuse of the costly emergency room care in lieu of the cheaper doctor visits. Hospitals pass those uncompensated costs onto other patients and their insurers. (Source: California Broken Health System FACTS)

These costs are often called "the hidden tax" by government health care "advocates" such as FamiliesUSA and echoed in the media who reprint the organization press releases almost without editing. In fact, most of the proposals and almost all of the media stories about the desperate need for reform are direct quotes from FamilyUSA.