GOP senators say 'no' to public plan
From NBC's Ken Strickland
In a letter President Obama, key Senate Republicans say they're unwilling to support one of Obama's pillars for health-care reform: a public/government insurance program to compete against private plans. The letter was signed by all but one of the Republicans on the powerful Finance Committee, one of the panels writing the health-care bill. (The one Finance Republican who didn't sign: Olympia Snowe.)
Citing the looming financial crisis for Medicare and Medicaid, the senators said that "creating a brand new government program will not only worsen our long term financial outlook but also negatively impact American families who enjoy the private coverage of their choice."
Their primary concern is that a government program available to all Americans would be cheaper, and as a result Republicans say, employers would drop their more expensive plans and put their employees on the government plan. They also fear people would take their own initiative and shift their coverage to the public option.
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The Republicans told the president that a public option "would result in 119.1 million Americans losing their private coverage. This would run contrary to your pledge to the American families about allowing them to keep the coverage of their choice."
Another side effect Republicans fear is that the massive shift to a government plan would force private insurers out of business. "Washington-run programs undermine market-based competition through their ability to impose price controls and shift costs to other purchasers," the senators wrote. "Forcing free market plans to compete with these government-run programs would create an unlevel playing field and inevitably doom true competition."
Democratic leaders have not finalized the contours of what a public/government program would entail. In fact, there are several versions of a "public option" being discussed by committee members.