Health care reform is shaping up as astronomically expensive, but that’s only if private insurers and Big Pharma get their way, writes Clinton-era Labor Secretary Robert Reich. Without competition from the government—a public option—the health care industry will continue to gouge and Americans will still be in the weeds, a trillion dollars poorer.
Robert Reich in the Wall Street Journal:
But before we even get to this point, it’s important to recognize that those terrifying CBO cost projections significantly overstate the costs. They did not include potential cost savings from the lynchpin of health-care cost containment: a so-called public option that would give people who don’t get health care from their employer the choice of a public insurance plan. Why? For the simple reason that the Senate committees hadn’t yet agreed on a public option. Yet without a public option, the other parties that comprise America’s non-system of health care—private insurers, doctors, hospitals, drug companies, and medical suppliers—have little or no incentive to supply high-quality care at a lower cost than they do now.
Which is precisely why the public option has become such a lightening rod. The American Medical Association is dead-set against it, Big Pharma rejects it out of hand, and the biggest insurance companies won’t consider it. No other issue in the current health-care debate is as fiercely opposed by the medical establishment and their lobbies now swarming over Capitol Hill. Of course, they don’t want it. A public option would squeeze their profits and force them to undertake major reforms. That’s the whole point.