Would the public option add signficant costs to health care reform?

[subterranean]

What I've read is that the public option would have to self sustaining -- i.e., funded entirely by premiums, not supported by taxes. Some people would receive government subsidies to afford it, but they will receive those subsidies regardless. In fact, if the public option is cheaper than private insurance, the government might have to pay LESS in subsidies. The only additional expense with the public option would be the administrative costs.

If this is correct, then the argument that the public option will greatly expand the deficit doesn't hold water. The only reason to oppose it is that it might reduce the potential profits of insurance companies, or eventually put some of them out of business.

Am I missing something here? Have any studies been done comparing the cost of the HCR bill with and without the public option?

[Oregone]

1. The only significant cost factor is need base subsidies

But these should be funded, so it wont contribute to the deficit

[georgian style]

2. Washington Post's Ezra Klein: CBO says PO "would save $150 billion over 10 years"

http://voices.washingtonpost.com/ezra-klein/2009/07/the_cbo_tells_people_to_calm_d.html

[Cleita]

3. Yes, studies have been done about public health care vs. private health

costs in other countries and in the state of Massachusetts. Try going to the Physicians for a National Health Plan website http://www.pnhp.org. They have studies and articles from other venues there. The health exchange plan being offered is not cost effective and will be very costly for our government with or without a public option. Protecting the health insurance companies' profits will be costly. The fact that the day after Obama's health care speech all the health insurance stock went up one to two points in the stock market should be a very telling benchmark.

The day that we as a nation realize and force our elected representatives to realize that health care is not a commodity or a business but a human right and part of the commons like the military, fire departments and our roads, then we might get something meaningful and effective to replace the other profit driven industry.