CBO: Dumping Public Option for Co-Ops Does Not Save Money

The Congressional Budget Office gave Sen. Max Baucus' bill the best scoring yet for a health care bill. But his removal of a public health insurance option in favor of seed money for non-profit co-ops has nothing to do with it.

Baucus' bill costs less in the eyes of the CBO because 1) Baucus covers less people than the other proposed bills and 2) CBO really likes the tax on generous insurance plans. (And as I noted before, CBO is biased against crediting new ideas with generating savings, short-changing the other bills.)

But none of that has to do with the debate between a public option and co-ops.

In fact, CBO didn't think much of Baucus' co-op proposal, concluding:

The proposed co-ops had very little effect on the estimates of total enrollment in the exchanges or federal costs because, as they are described in the specifications, they seem unlikely to establish a significant market presence in many areas of the country....

Whereas, the CBO responded to a public option query from GOP Baucus Caucus holdout Sen. Mike Enzi and said the public option wouldn't change federal spending, while lowering insurance premiums for individuals:

...[A] public plan as structured in the introduced bill would probably attract a substantial minority of enrollees (in part because it would include a relatively broad network of providers and would be likely to engage in only limited management of its health care benefits). As a result, it would add some competitive pressure in many insurance markets that are currently served by a limited number of private insurers. That competitive pressure would probably lower private premiums in the insurance exchanges to a small degree ... net federal outlays on health care would not be appreciably different...

For those so-called moderates who claim this is all about spending and cutting the deficit, and who bow to the CBO in making such determinations, there is no reason to reject the public option on those grounds.

Originally posted at OurFuture.org

 

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Comments

[WildDog]

If we used the money paid to private contractors related to the war on terror we could pay for all of a Medicare for All.

For a little fun with politics try this;
http://beauproductions.com/usworld/forum/index.php?topic=185.new

[unionave]

The Health care system in place now was designed by Congress and friends for the benefit of members of Congress and the insurers . Not for the citizens of the U.S.A. and the longer Congress plays with what we have now the worst things are going to be for the citizens of the U.S.A. NYC has had a public affordable health care system since the 1800's that works well . And it is paid for by NY tax payers . They seem to know what they are doing . Can't say the same about the U.S. Congress .

[progressiveconnie]

GOOD MORNING!!! MY FELLOW HOMO SAPIENS WHICH MEANS THE SPECIES WHO IS WISE.
There are no doubt alot of democrats that would just love to tar and feather Baucus, Conrad and Feinstein and if you want to know why they are opposed to the public option and why they are supporting those outrageous swindle bills that will only benefit the HMO'S and Drug Corporations just take a peek at how many millions of dollars they are getting from those HMO"s and Drug Corporations.
The truth is that Baucus, Conrad and Feinstein are not really democrats anymore and should be banned to the Robber Baron Stooge Party where they belong and so should any other so called democrat who refuses to support the public option and who is supporting the biggest swindle bills in human history because they are taking millions in bribes from those HMO'S and Drug Corporations and anyone who believes that America is still a republic needs a brain transplant.

[PlaceboStudman]

Why is anyone even talking about the price of the product, let alone who is going to pay, when most of us don't even have a flipping clue what we are getting for whatever we pay? Are we really so ready to give our money away to people so desperately that we don't care what we get in return?

[Centient]

So many words into the wind. The CBO is either a king-maker or a stooge depending on how one chooses to spin their opinions.