It’s great to hear words like this coming out of the President’s mouth:

Why would it drive private insurance out of business? If private insurers say that the marketplace provides the best quality health care; if they tell us that they’re offering a good deal, then why is it that the government — which they say can’t run anything — suddenly is going to drive them out of business? That’s not logical.

Now, I think that there’s going to be some healthy debates in Congress about the shape that this takes. I think there can be some legitimate concerns on the part of private insurers that if any public plan is simply being subsidized by taxpayers endlessly that over time they can’t compete with the government just printing money, so there are going to be some I think legitimate debates to be had about how this private plan takes shape.

But just conceptually, the notion that all these insurance companies who say they’re giving consumers the best possible deal, if they can’t compete against a public plan as one option, with consumers making the decision what’s the best deal, that defies logic, which is why I think you’ve seen in the polling data overwhelming support for a public plan.

  1. Schu says:

    Intelligent reasoning like this is why I campaigned for Obama in our area. It is also the first time I have ever campaigned for anyone.

  2. Gherald says:

    In my post on the public option and price controls, I open by agreeing with Obama's reasoning--given the assumption that the public plan were to compete on a level playing field.

    If the playing field is uneven--e.g. the public plan is subsidized by taxpayers or uses its negotiating power to reimburse providers at sub-market Medicare rates--then Obama's conclusions do not obtain.

  3. siva123 says:

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