Saving Money via the Public Option

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As long as we’re on the subject, here’s another statement from the CMS report that I blogged about below:

We estimate that the public plan would have costs that were 5 percent below the average level for private plans but that the public plan premiums would be rought 4 percent higher than private as a result of antiselection by enrollees.

If this is true, it means that the public option would save the government some money but is unlikely to put pressure on private health insurers to lower their premiums.  We’d all keep paying the same prices we are today.  Bummer.

Overall, however, this is still a net positive for healthcare legislation.  Consumers might not save any money directly, but since we’ve apparently decided that a 10-year cost of $900 billion has been handed down on stone tablets and can’t be changed, that means that saving the government some money via the public option would allow more to be spent on other things.  Like, say, higher subsidies for low-income families.

That’s sort of a roundabout way of getting to higher subsidies, and as a big fat tax-and-spend liberal I’d opt for simply combining both the House and Senate tax increases and using the money directly.  But any port in a storm.  If $900 billion is untouchable, then the public option is a good way to free up a little extra dough.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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