PRESIDENT OBAMA'S HEALTH PROPOSAL WOULD LEAD TO PUBLIC OPTION
February 26, 2010
President Obama's new health care plan will all but guarantee the elimination of private insurance and lead to a single payer government-run health care system, says policy analyst Matt Patterson of the National Center for Public Policy Research.
In the new report, "White House Health Care Plan Contains Back Door to a Public Option," Patterson found that President Obama's health care reform plan would:
- Create a new federal agency charged with monitoring health insurers to make sure that proposed premium increases are not "unreasonable" or "unjustified"; this agency could compel private insurers to lower premiums, offer rebates or "take other actions to make premiums affordable."
- Dictate that health insurers cover those with pre-existing conditions and saddle them with billions in new taxes and fees.
- Health insurance is one of the least profitable industries in America; in terms of profit margin, in 2009 it ranked a dismal 87th out of 215 industries; their overall profit margin was a mere 3.4 percent.
- President Obama's proposed combination of new taxes and price controls would cause a wave of health insurer bankruptcies, devastating the industry and reducing health insurance options for consumers.
- Eventually, the shrinking pool of private insurers would force the government to enact a single payer system to provide the insurance that Congress mandates that all Americans have.
Patterson calls Obama's ploy "breathtakingly audacious," noting, "Far from being able to keep the plan you like, the president's health care plan seems designed to make sure you end up with only one option for your health care -- the government."
Source: Press Release, "Report Concludes President Obama's Health Proposal Would Lead to Public Option," National Center for Public Policy Research, February 25, 2010; based upon: Matt Paterson, "White House Health Care Plan Contains Back Door to a Public Option," National Center for Public Policy Research, Report No. 603, February 2010.
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