Health Care Reform Public Option Opt Out
State Decision on Public Plan with National Health Reform
Oct 28, 2009
The public option in the national health care reform plan is a proposed program that will be run by the government if it is enacted. It would serve to offer affordable premiums to every United States citizen who cannot find affordable coverage from private insurers, but many oppose it becuse it is run by the government (and relies on taxes for maintenence), and because it may provide serious competition to businesses in an otherwise private industry.
Purpose and Methods of the Public Plan in Detail
As health insurance is a major industry, private agencies are not interested in offering great coverage at low rates to people with particular health conditions. This means that it is in the interest of private agencies to refuse people, or request extremely high premiums from clients who have pre- existing conditions that would likely require serious coverage. The public option plan, which would be run by the government, would offer affordable premiums for coverage to people who cannot find affordable insurance elsewhere, or prefer the government-sponsored insurance program to their present insurers. People who are covered by their employers will not be eligible.
State Decision to Opt Out of Public Option with Health CareReform
Presently, the public plan is being considered once again (as it has been rejected in the past), but as the government-run entity still draws serious opposition, with its installment, an ability for states to "opt out" of the plan is proposed. If the plan is followed through, likely many red states will opt out, which means that the citizens of these states will not have access to this option, and must rely on private insurers. However, this feature might be necessary for the plan's enaction, as it minimizes opposition to the public option.
Negative Impacts of the Health Care Reform's Public Option Opt Out
As the public option is supposed to be available to those who may benefit from it, allowing states to choose to opt out of the plan would mean that any citizen who prefers the option will not be able to choose it in certain states. Speaker of the House Nancy Pelosi has called the public option the "consumer option," to make it sound more appealing than it does now, but the opt out feature will limit consumer choice to some degree.
If the opt out feature is included in the reform plan's public option, another issue arises. As the public option will be run and maintained federally, it, like any goverment program, will rely on tax dollars. For states that opt out of the public option, certain tax exemptions will have to be offered to their citizens, so that people do not pay for an option that is not available to them.
The public option in the health care reform plan has garnered more support upon including the "opt out" feature, which would allow states to refuse the government-sponsored insurance program. However, states that choose to opt out will deny citizens the ability to rely on the public option. As House democrats are strongly pushing for a reform that includes the public option, it may be necessary to compromise with those who do not support the plan, and allow the opt out feature.
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