Is “the public option” really we really want (or need) to fix our healthcare system? Think about it. Do we really want the Federal (or state) government running one of the biggest, most important industries in the US. (Healthcare is currently 16% of US GDP.) Show me one example where the government has been able to do that successfully? Medicare is an absolute disaster on all accounts. The US Postal Service? Amtrak? TSA?
OK, let’s say we are stupid enough to allow a public option. What will happen? First, the government plan will be focused on achieving economies of scale first and foremost and will not concern itself with innovation. The government will try to use its size and purchasing power to negotiate special terms. Second, healthcare providers (hospitals, clinics, & doctors) will consolidate to fight off this newly formed oligopsonist. So we will quickly have a health care market dominated by oligopsonists and oligopolies. What does this mean? It means increased prices, limited choices, no innovation, and inferior quality for patients.
What are we thinking? The public option is a bad idea.
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