We need to make sure, however, that the "co-op" plan proposed by Conrad never becomes synonymous with a national public option.http://www.npr.org/templates/story/story.php?storyId=105442888As debate gets under way over Obama's initiative to revamp health care, Republican opposition has centered on one of the key pillars of the president's proposal: the so-called public option — a publicly funded insurance plan that would likely compete against private insurers.
A public health insurance plan, Sebelius said, will put pressure on private insurers to keep costs competitive. "And that's a good thing," she says. "I think that's a good thing for the American public. Medicare right now has lower overhead costs than private insurers."
Republicans argue that upward of 100 million Americans would opt out of private insurance in favor of a public plan if such a plan were available. That figure comes from a study by the Lewin Group, a consulting group owned by Ingenix, a subsidiary of UnitedHealth Group, but it is a selective representation of the study's findings.
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"The whole idea of the public option has been difficult, in part, because some of the opposition has described it as a potential for a, you know, draconian scenario that was never part of the discussion in the first place," Sebelius says. "So, disabusing people of what is not going to happen is often difficult, because there's no tangible way to do that."
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82 million in Germany, not all buy private insurance, yet the heavily regulated private insurance market works fine alongside the health coverage provided by the government for ALL citizens.
307 million in US. 1 in 4 (83 million) get health insurance through federal government (46 million Medicare, 11 million military, 8 million SCHIP, remainder federal employees or various other smaller programs). Of those who are not eligible for health insurance through the federal government (307 -83 million) = 224 million: 1 in 3 either is uninsured (48 million+) or underinsured (25 million+).
Even if 119 million of these 224 million joined the public option, as Grassley fears, there would still be more left over than the entire population of Germany.
Just why wouldn't private insurance survive in US, if it can in Germany?