
From Talking Points Memo:

If Democrats had balls, Congress would be voting on a single-payer health care system right about now. But many of them don't. So the past few months have been spent arguing for a watered-down public option. That fight has often been won by the more conservative (read: health industry-backed) members of their own party. So why is it again that a robust public option is critical to real reform?After months of publicly supporting health care reform, insurers are warning Congress that under the Baucus health care bill, “the cumulative increases in the cost of a typical family policy…will be approximately $20,700 more than it would be under the current system.”
The industry has issued a new report arguing that the weak personal responsibility requirement, taxes on health care providers, spending reductions in Medicare and taxes on high-value health plans will increase “the cost of coverage for both single and family policies in the individual, small group, large group, and self-funded insurance markets.”
Ezra Klein and Jonathan Cohn dispute the report’s methodology here and here, but it’s worth pointing out that industry’s argument that reform will increase insurance premiums for all Americans is simply untrue. It could also backfire. As Rep. Anthony Weinder (D-NY) explained this morning on MSNBC, “the health insurance lobby today fired the most important salvo in weeks for the public option“:
If you have the health care industry complaining that we’re going to raise costs because of these changes, it is them putting us on notice that we haven’t put enough cost containment in the bill. You know, the health care industry themselves is putting out a whole report saying that. That should be a tell to the Baucus team that you know what, maybe it’s time for them to go back and revisit the public option. In a strange way, and look, obviously they didn’t mean this, the health insurance lobby today fired the most important salvo in weeks for the public option, because they have said, as clear as day, left to their own devices, according to their own number crunchers, they’re going to raise rates 111%.
The reality is, some reform provisions would tend to make premiums higher than current-law premiums; other provisions would “tend to make them lower.” Americans from different income brackets will pay different amounts for health care, but on the whole, the Baucus bill, which provides affordability subsidies for Americans between 133-400% federal poverty line, will offer health insurance policies that are far more affordable than what the insurance industry report predicts.
Here is a comparison between the non partisan Congressional Budget Office’s analysis of the cost of premiums in the Exchange and the industry’s report. As it points out, under reform, Americans — even those that don’t qualify for a subsidy — will have far more affordable insurance options than industry’s “average” suggests:
Insurer Analysis: Premiums In 2016 | CBO Analysis: Premiums In 2016 (Exchange) |
$21,300 | $14,400 |
Still, the Baucus bill must do more to control health care spending and lower premiums in the private market. After all, Congress shouldn’t force Americans to purchase unaffordable coverage. But for all their concern about ‘average health care costs’, insurers have a poor track record of controlling prices. As Families USA points out, insurers are “like a poker player who complains about his hand when, in fact, he is the dealer.”
Indeed, despite complaining about high health care premiums, insurers have lobbied against system-wide cost containment. They’ve spent millions of dollars opposing a public option that could reduce health case spending by some $150 billion and are even suing the state of Maine to increase premiums.

Liberal Senate Democrats on Friday will push to add a government-run insurance program to the health care bill in the Finance Committee, setting off a potentially explosive debate with Republicans who view the idea as a step toward “socialized medicine."
Senator John D. Rockefeller IV, Democrat of West Virginia, and Senator Charles E. Schumer, Democrat of New York, said Thursday evening they would propose the government-run program — the so-called public plan — because efforts to revamp the health system and cover the uninsured would fail without it.
“The best way to control costs, the best way to make availability easier is to have competition to the insurance industry which does not have to make a profit,” Mr. Rockefeller said in a conference call with reporters. Mr. Rockefeller said the public plan would combat the “rapacious instincts” of private insurers.
Centrist Senate Democrats long ago nixed the idea, knowing that it would be a deal-breaker with Republicans, and are expected to defeat the proposal on Friday.
Even the one Republican still willing to vote for the bill, Senator Olympia J. Snowe of Maine, has said she would support a public plan only as a fallback to be triggered in geographic areas where the legislation fails to provide affordable insurance.
Mr. Schumer said he would push the idea even if the finance panel rejects it. “It’s a fight that is going to go down to the wire,” he said.
But even if Congress creates a public plan, it would not be available to the majority of Americans who now have employer-sponsored health insurance, because the legislation would force them to keep their existing coverage.

If you've been paying attention, you are aware that the Republican Party ceased to exist on January 20th, a tad past noon, just as Barack Obama said, "So help me God."
The deceased--and diseased--GOP instantly became the home of the modern-day John Birch Society. They rebranded themselves as the Party of No, and chose charlatans such as Rush Limbaugh and Glenn Beck as their inspiration.
But there are still two major political parties in the United States. They're both within the Democratic Party, however:
From Newser.com:
Harry Reid declared "90% agreement" in the Senate on health care reform today after a meeting with President Obama. Reid and Nancy Pelosi expressed optimism that the president's address to Congress tomorrow will bolster support for reform, the Hill reports. The Senate Majority Leader is confident that the speech will at least defuse some of the “ridiculous falsehoods” that have so far dominated the debate.
The two congressional leaders did not seem in sync on the issue of a public option: Reid said he and the majority of the Senate wanted it but did not see it as necessary. Pelosi, however, said the creation of a government-run health plan was “essential” for passage in the House.
So we have the pro-public option Democrats, who represent the Good Guys in the health care reform debate. Then we have the we-don't give-a-shit-about-a-public-option Democrats. Two parties, divisible, with liberty and justice for some.
Meanwhile, as Newser points out:
White House press chief Robert Gibbs didn't shed any light on whether Obama would demand a public option, but he said the president would make sure people “understand what the public option is and what the public option isn't.”
The only thing I don't understand about the public option is what the hell Robert Gibbs is double-talking about.
It's really quite simple: will President Obama go to the mat for a public option? Or will he give in to Big Pharma, the health insurance industry's money-soaked lobby, and the town hall disrupting, teabagging, talk radio-fueled frantic fringe?
Mr. Gibbs, we know what the public option is, and we want it.
Change we can believe in. Remember?
Is that the Democrats' white flag?White House officials said Sunday a government health insurance option is negotiable, signaling a potential compromise on an issue that President Barack Obama's liberal supporters consider do-or-die.As Obama prepares for a Wednesday night speech to Congress in a risky bid to salvage his top domestic priority, political adviser David Axelrod said a public plan is not the core issue in the health care debate. White House spokesman Robert Gibbs danced around a question about whether Obama would veto a bill without the public option.The president "believes the public option is a good tool," said Axelrod, who joined with Gibbs in a one-two punch on the Sunday talk shows. "It shouldn't define the whole health care debate, however."Their appearances came ahead of Congress' return this week from a summer break that saw eroding public support for an overhaul and contentious town hall meetings in lawmakers' districts.Gibbs called the government plan a valuable tool. But asked if Obama would reject legislation that didn't include it, he responded: "We are not going to prejudge where the process will be.""I doubt we are going to get into heavy veto threats" in the president's speech, Gibbs added.Their comments on the public plan echoed Health and Human Services Secretary Kathleen Sebelius' remarks last month that a government alternative to private insurance is "not the essential element" in revamping the system to guarantee coverage for all and try to curb unsustainable costs.Liberals — many of whom want to do away with the private health insurance industry and replace it with Medicare for all — were furious. At the time, White House officials said Sebelius' remarks were being misinterpreted. Left unclear was Obama's bottom line.Now it seems that Obama and his top aides are coming around to the view that a public plan is not essential. On a call with prominent liberal House members Friday, Obama refused to be pinned down on the issue, a participant told The Associated Press.

"President Obama says he is a strong supporter of a public option. Bottom line: with Republicans seemingly unwilling to support a public option, is President Obama willing to follow the advice of Sen. Bernie Sanders and Gov. Howard Dean to use reconciliation--an up-or-down vote--to pass real health care reform with a strong public option? And--if not--why not?"


From Sam Stein on HuffPo:
From Paul Krugman in the New York Times: