The "level playing field" Schumer was talking about this A.M.- that's the catch

[coti]

The opt-out provision isn't bad, and neither is the idea of having the public plan administered by a private insurer. If they're only administering the plan, they have no profit incentive. They're pretty much allowing the government to make use of their cogs to get the government plan done, for a fee.

But this "level playing field" takes the teeth out of a public option entirely. It will "level the playing field" by deliberately increasing the cost of the public plan.

Yes, that totally defeats the purpose of the public option and is as stupid as it sounds. Apparently it wasn't enough that the plan could only cover a very small fraction of Americans to begin with. The insurance companies needed to be able to dip their beaks deeper.

The public option is meant to give a significantly less expensive alternative to private plans while driving down private plan premiums. What the hell is the point of it if it costs the same as a private plan?

[Oregone]

1. "What the hell is the point of it"

Maybe to distract you from focusing on other aspects of the bill, such as mandates. Many are sitting here pulling tooth and nail over a provision they wont even have access to, while forgetting that they will be forced to buy private insurance, despite the asking price. As long as private coverage isn't too exorbitant, people will not forgo it and pay the mandate penalties for nothing. Many are deluded to think that just because an employer offers a plan that it will be fair and affordable for the workers to participate in.

[AllentownJake]

3. This is what this entire Public Option show

has been about from the beginning. They made one thing the center of every progressives desire for the bill, now nothing else in the bill matters as long as some sort of public option is passed no matter how insignificant it is.

The public option show, also took all the single payer advocates and made them to the left of the President. Great triangulation.

[AllentownJake]

2. We've wasted 6 months

Debating an issue amongst ourselves to pass a bill that may exacerbate the issue and make the party unpopular.

Politically I'm a lot more worried about the mandates than I am the public option.

[BzaDem]

4. Politically, I wouldn't be worried about mandates.

Right now, you are completely exempt from the mandate if insurance costs more than 8% of your income. Furthermore, subsidies will lower the cost below 8 for people making less than 2.5 x poverty level. That is a similar percentage income that people in Canada/Europe pay due to higher taxes for single payer.

[AllentownJake]

5. Middle Class family

Either self employed or working for a small business making 60,000 dollars a year, kids are on S-Chip being told they need to purchase a 5000 a year insurance policy by the government that isn't that good.

Not good, and it will not play well on TV either.

[Oregone]

6. Subsidies will not lower anyone's cost...

Who don't qualify for the exchange (most people).

Right now, you are completely exempt from the mandate if insurance costs more than 8% of your income.

Depending on the free market to keep costs under that mark is a denial of everything we have seen about economics. If serving 60% of the market at an inflated cost brings more profits than serving 100% of the people at a suppressed price, they will do the former. That is basic economics

[BzaDem]

7. Mandates won't affect anyone who doesn't qualify for the exchange.

You qualify for the exchange if you do not have adequate insurance through your employer. The mandate only affects you if you don't already have adequate insurance through your employer.

So if the free markets fail to keep costs low, then the mandate won't affect anyone. So people worried about the mandate should not be worried.

[Oregone]

9. Incorrect

You may qualify for an employer provided plan, but it may be too expensive for you to participate in. Do you think all employees will be allow to drop their employer plans and switch to the Public Option? Do you believe that? The private market will be their only option.

So if the free markets fail to keep costs low, then the mandate won't affect anyone.

Now that is another denial of basic economics. There is a point where the price point line will intersect the demand line (which is also dependent on the price point line because of the exclusion you mention), and that will be the optimal average price for coverage. They do not need 100% coverage to obtain the most profits, but they obtain no revenue whatsoever for setting the highest price possible. There will be some pretty firm computer models to dictate the demand. They simply will not firmly be able to represent those above 8% who will still choose coverage and those below who decide to opt out regardless and pay the fines.

[Better Believe It]

8. Here's the point. A weak public plan that isn't better than private insurance is enough to get

the support of many "liberals" without threatening the insurance industry.

[coti]

10. bump n/t