There appeared to be serious consideration of a new proposal on the table: a national health plan similar to the Federal Employee Health Benefits Plan, which provides insurance to members of Congress and federal workers. It would be administered by the Office of Personnel Management, which oversees the federal plan, and all of the insurance options would be not-for-profit.
This is not a public insurance entity competing with the existing private insurance companies. This will do nothing to inject competition into concentrated markets. This will not ensure the government provides people will at least one decent insurance plan structured to promote the public good. In the long run this will not change how the insurance market operates or help rein in our out of control health care costs. (The FEHBP has been a failure on the cost controlling front.)
From what little reporting there is about this proposal (here and here) it seems the idea is basically to create another national exchange as an alternative to the state-based exchanges or another slightly better exchange run by OPM within the basically useless state-based exchanges. I don't know what is more sickening; the fact that Democrats will try to slap the word “public option” on existing private insurance coverage and hope everyone is too stupid to notice or the fact that the current state-based exchanges are such terrible pro-insurance, anti-consumer marketplaces that some senators think an acceptable “alternative” is another exchange designed slightly better.
This “alternative” does not even vaguely resemble a public option. It is simply a marketplace where the OPM will negotiate with private non-profit insurance companies to try to get slightly better deals for people using the program. You will still be forced to buy expensive insurance from the same private insurance companies that have failed so far. It will not inject any competition into concentrated insurance markets. This is only an exchange. This is similar to how the national exchange is designed in the House bill. This is how the exchanges would have been designed in the Senate bill until Max Baucus and Olympia Snowe removed every consumer value protection.
The Democrats better start acting like they at least care about regular Americans more than the health insurance corporations. Dropping the incredibly popular public option which would bring down cost for the government and regular Americans because the private insurance companies, Republicans, and Joe Lieberman demanded it is not going to rally the base. Making the “alternative” needed to win over Snowe merely fixing a few of the problems with the exchange that she herself caused does not sound like victory. If elected Democrats insist on putting a Republican in charge, don't be shocked when the Democratic base has zero reason to turn out in 2010. After all, a vote for a Republican is a vote for Republican leadership, and a vote for a Democrat is just also a vote for Republican leader.