The Public Option
October 26, 2009
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Posted by Michael S. Langston
If you’re anything like me, you too are getting nauseous about the “public option” in the health care debate. One day it exists, the next day it will never exist. The day after, it’s required…
Well, apparently legislators might have a compromise to pass a bill including an “opt-out public option” (@theHill.com):
Democratic senators continued to remain bullish on the chances of creating a government-run public option as part of health reform….
…Schumer echoed the calls of several senators who this week said that Democratic negotiators has garned the 60 votes necessary to invoke closure on the measure. Sen. Arlen Specter (D-Pa.) last week put it in even stronger terms, saying that Reid had 60 votes for a “robust” public option.
…According to Schumer, Reid “is leaning strongly” toward including a provision that would allow states to opt out of public health insurance if they want to keep private insurers.
Schumer added that the liberal senators are “able to live with” an opt-out public option under which states could decline to participate in a public program….
So there we are; in a compromise between moderate and liberal Democrats only, a public option seems likely. Not only has the White House and Democratic leadership dropped any pretense of working across the isle, but people at large seem unwilling to question the claims of their leaders.
One suc spurious claim, is that this option will result in increasing competition:
…”We need some competition for the insurance companies,” Schumer said on NBC’s “Meet the Press.” A government-run insurance plan would “have to play by the same rules as the insurance companies and it would negotiate rates with the providers,” Schumer said. Having a public option would bring competition to states that only have one or two insurance providers, Schumer said….
Proponents everywhere continue to take this stance, even though a public option is logically inconsistent with their stated goal of increase competition.
If Mr. Schumer and others truly wanted to add some competition for insurance companies, adding a new company would not be necessary. In deed, removing the laws the disallow selling of insurance over state lines doesn’t cost the tax payers one single dime, yet increases competition dramatically, both in the total number of competitors and the speed at which they can begin competing. Additionally, given the benefits a public option will have over its private competitors, this isn’t really competition.
As Michael Tanner wrote over @ Cato, this support for a public option isn’t likely what it seems (@Cato):
Cognitive dissonance is defined as holding two completely contradictory ideas at the same time.
That seems to be the case with the American public, with a new poll showing rising support for a so-called public option in health care, even as the public continues to oppose greater government control over the health care system….
All in all though, the Democrats hands seem to be very strong hand right now with recent polls showing 57% of the country expressing approval of a public option. With uninformed voters, an uninformed and uninformative press, and politicians more worried about winning than engaging in honest debates, this compromise might soon become law.
That’s freedom for you – as unfortunate as it seems, whether most people truly understand what the public option entails is irrelevant. So long as they are willing to approve things they know little about and skip any hard work necessary to critically analyze the problem and various solutions, this new government boondoggle will just continue going forward.
Categories: Critical Thinking, Economics, free market, Legislation, NGOs, Politics
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Tags: Cato, Cognitive Dissonance, Competition, Congress, Cost/Benefit Analysis, Critical Thinking, Economics, Free Market Principles, Freedom, Government Services, health care, Health Care Reform, idiocy, Legislation, Logic, Logical Inconsistency, NGOs, Obama, Obama Administration, Political Philosophy, Politics, Statism, Wasteful Spending
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