Submitted by Tom on Wed, 2009-11-18 21:20
Charles Vogelhuber of Charles City had this LTE published in the Charles City Press and the Mason City Globe Gazette:
Opponents of the public health insurance option charge that it would lead to a government takeover of all health care in this country. They say that private health insurance companies would be unable to compete with a competitor that would have unlimited access to the federal treasury. They would have a strong argument if such a competitor actually existed.
The House of Representatives recently passed the Affordable Health Care Act for Americans. It is the counterpart of a bill which will be considered by the Senate. That Act would make the choice of a public option available to individuals and small businesses. That option would have to play by the same rules as private insurers. It would have to abide by the same insurance reforms and consumer protections.
That public option would not have unlimited access to the federal treasury. In fact, it is mandated that once the public option is set up, it shall be completely self-supporting. It would be lent start-up funds and that is the only financial support that it would receive. The Act requires that the start-up costs shall be amortized into future premiums (In other words, the money lent to set up the option shall be paid back with interest).
It is hard to believe that private health insurance companies cannot compete with a public option that is legally required to play on an even field and to have insurance premiums as its only source of income.