Ensuring Failure
What to Know: Where have we heard this before?
“At the center of Joe Biden’s health-care proposal is the ‘public option’—a government insurance policy that would compete with private plans,” Scott W. Atlas writes in the Wall Street Journal. “Mr. Biden has obviously seen the polling. By 57% to 37%, Americans reject the idea, put forth by some of Mr. Biden’s Democratic rivals, of abolishing private insurance in favor of ‘Medicare for All.’ The public option seems like an attractive alternative—enough so that Mr. Biden, in announcing his plan Monday, revived a discredited Obama slogan: ‘If you like your health-care plan, your employer-based plan, you can keep it.’”
The TPPF Take: A public option would crowd out private insurance—by design.
“The goal of plans with so-called ‘public options’ is to give everyone health care coverage by creating an artificially cheaper option,” says TPPF’s Jennifer Minjarez. “The idea is that if the federal government provides a cheaper option through tax-furnished subsidies and ‘negotiated’ (fixed) drug prices, private insurance will be forced to lower its prices to compete. It doesn’t work; it will only lead to less care and fewer options.”