Jonathan Cohn at The New Republic wonders how many lives the Public Option has in the health reform debate. Hopefully, at least one more.
Will health insurance reform without a public option be a good deal? With the elimination of requirements to prove insurability, the exclusion of coverage for pre-existing conditions, and elimination of annual and lifetime limits on health coverage, consumers would seem to win. But if that comes at the cost of a mandate to buy health coverage, if the carriers that sell coverage continue to enjoy the McCarran-Ferguson exemption from federal antitrust laws, and if fewer carriers compete in the marketplace, I’m betting health insurance costs will soar without a cost-competitive public option. Between 1987 and 1999, the number of health insurance carriers in the U. S. dropped 34.7 percent according to the National Association of Insurance Commissioners. I predict this trend will only continue as more health insurers exit the business as the regulatory climate changes, making it difficult for the small group and individual health insurers to earn big profits by denying coverage, rescinding policies, and enforcing pre-existing condition limitations. Without a strong public option, consumers will likely have fewer choices and even higher costs.
Posts
