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Linda Bergthold

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Who Knew? California May Have a Public Option

Posted: 01/14/12 05:43 PM ET

During the health reform debate, there was controversy and disappointment over the failure to include a public option in the Affordable Care Act. Not only did the public option idea not die, it is alive and well in California.

In northern California last week, Kaiser Health News correspondent Sarah Varney interviewed the CEO of the Alameda Alliance for Health, Ingrid Lamirault, about their intention to participate in the California Health Benefit Exchange when it goes live in 2014. The Alameda Alliance is a non-profit insurer (governed locally) that competes with private for-profit plans in the county to deliver health services to Medicaid beneficiaries (called "Medi-Cal") and public employees.

California does not have a monolithic or centralized Medicaid program. There are a variety of innovative programs that deliver cost-effective high quality care to Medi-Cal beneficiaries. Alameda Alliance is one of fourteen "two plan" counties that serve 3 million beneficiaries. Alameda has to market to Medi-Cal members in competition with a commercial plan. These public plans have been competing with the private sector for over a decade, and despite initial concern from both the left and the right, Medi-Cal beneficiaries and providers are pretty satisfied with the program, which has been able to live within its budgetary limits. Members can walk into the local office of Alameda Alliance and talk to a real person; they can get a home visit from a doctor or pharmacist; they get to choose their provider. Because of their success, some of these "public option" programs are now considering expanding their services to a broader population through the Exchange.

The other main model of Medicaid managed care in California is a six county program called County Organized Health Systems or COHS. These programs have the "franchise" to treat Medi-Cal beneficiaries within their county boundaries without having to compete with any other plan. Because they don't have to spend money on marketing, the COHS plans are able to save money on administrative overhead and return some of those savings to the providers in the form of bonuses for delivering quality of care as well as providing additional services to their members. Some of the larger COHS plans may decide to participate in the Exchange, and people who live in those counties can only "hope" they get a chance to choose these plans when 2014 rolls around.

Why is this important and is it "news"? It's important because many of us felt all along that public options could still spring up at the state level, despite lack of support from Washington. The fact that the Alameda Alliance wants to participate in the Exchange as a public option is validation of that hope. It's news because, although many of California's managed care Medi-Cal programs have been working successfully for over a decade (and I have written about them here), this is the first time that we have heard publicly that one of these programs will expand its services to the broader public because of health reform. Even though it's a small step, and only a few counties may participate at first, it should give encouragement to those who have been so strongly supportive of a public option and single payer program in health reform.

 

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During the health reform debate, there was controversy and disappointment over the failure to include a public option in the Affordable Care Act. Not only did the public option idea not...
During the health reform debate, there was controversy and disappointment over the failure to include a public option in the Affordable Care Act. Not only did the public option idea not...
 
 
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HUFFPOST SUPER USER
Craig Bovia
Vermont, 1791, women can vote, no slavery allowed
11:48 AM on 01/16/2012
That Americans do not have a Public Health Options is another High Crime Against Americans that can be pinned directly on the GOPer's who prefer to see for-profit healthcare companies continue to rip-off their greedy profits from all of US. European Countries that offer their loved Citizens Universal Health Care pay half of what we do, at the most. Most of their Citizens live years more than US and are measurably happier. We see GOPers jumping up and down yelling that we have the best health care system in the world as they step over the sick and dying. Shall we compare Education Results?
HUFFPOST SUPER USER
Awake-and-Sing
named after a great play written by Clifford Odets
02:30 AM on 01/16/2012
As a Californian, I say thank you.

Single-payer health care has twiced passed the California legislature only to be vetoed by Republican Governor Schwarzenegger. I am much more hopeful of it being signed by Democratic Governor Jerry Brown
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HUFFPOST SUPER USER
Claude Hosch
A single bracelet does not jingle
09:49 PM on 01/15/2012
I hope it snowballs.
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HUFFPOST SUPER USER
jfbuf
people are corporations too
12:55 PM on 01/15/2012
I wish NY would have a public option
HUFFPOST SUPER USER
tinman123
12:33 PM on 01/15/2012
I have long had the opinion that universal health care is a perfect option . And wondered why people want to give their money to "insurance company's" rather than the people that actually do the health care.
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HUFFPOST SUPER USER
ennis438
12:21 PM on 01/15/2012
The only place where support for a public option does not exist is a place controlled by corporate mafia puppets who function only when purchased by anti-American corporate criminals to do their criminal dealings. A perfect description of the United States Congress.
nothingchanges
too soon old, too late smart
11:48 AM on 01/15/2012
It is my understanding that the overhead costs for "Medicare" is 3%.

The Patient Protection and Affordable Healthcare act, gives insurance companies 15%

If Government was allowed to compete with private insurers with a proviso that they charge the exact same rate as the lowest priced private policy, that 12% difference could be used to pay down deficits.

Let those that want to buy insurance from private parties, do so, but also let those that would prefer to "buy into" medicare do so as well.

The public option, should be just that. An option, left to each individual policy buyer to determine what is in his or her best interest.

This could have been a win/win/win situation.

Too bad corporate money determined the outcome of the national vote.
Vyslichajici
private american citizen
09:56 PM on 01/15/2012
they should not be forced to toad along with the commercials. they should offer it at cost, not lockstep with the lowest priced "private: policy.

give corporations some actual competition for once, fer kyssakes.
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HUFFPOST BLOGGER
Harold Pollack
10:00 AM on 01/15/2012
Public option--even more worth supporting now that basic ACA has passed.
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HUFFPOST SUPER USER
Vegan Girl
Compassion for all
07:01 AM on 01/15/2012
there is a small but crucially important part of the new health care law: that out of each dollar, insurance companies are mandated to spend 85 cents on providing health care. And regulators already stated that executive bonuses do NOT qualify for this.

What this means is that insurance will not promise enough profit to be bothered with. There will be an exodus of corporations and I will not miss any of them. I think public options will become very robust very soon because of this.
08:52 AM on 01/15/2012
And, I say Amen to that. My employer sponsored insurance was renewed at a slightly lower premium rate but with substantially lower max out of pockets and deductible. Oddly, this happened without much fanfare at all. I credit the Affordable Care Act with the fact that my annual health care costs will now only cost about 10% of my net pay rather than the 30% it was taking up in 2011.

I can't wait until 2012 and 2014, when the real teeth of the ACA kick in.
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HUFFPOST SUPER USER
Vegan Girl
Compassion for all
02:14 PM on 01/15/2012
Amen to that. I had a similar experience with the credit card consumer protection law in 2009. I felt the positive difference in my own bills.

It just occurred to me that 2014 may be a politically slick timing. If Obama will be reelected, then the success of the health care reform might be a good start for a democratic win in 2016.
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HUFFPOST SUPER USER
Mistinguette Grandison
No. Corporations are NOT people
10:36 AM on 01/15/2012
Change starts in incremental steps. SS excluded share croppers and domestic workers when it first started out, which was pretty big considering the program was created to help those who earned money keep it. And so the public option is the next step. That's why it's so important to look at change as a long-term goal.
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K August
Research alecexposed
06:42 AM on 01/15/2012
The ACA allows for many versions of health care coverage.....the public option being one of them.
If more folks understood that they'd probably be pushing their state to jump on it.

I've read that many states are looking at it and moving in that direction.
Vermont might be the first.
The ACA also has something in it called Primary Direct Care. It's pretty cool......a small monthly membership fee and you can have all the care you'd get at an Urgent Care clinic. Insurance companies (and the expense to Dr's that goes with it) is gone......just Dr. Patient.
A wrap around policy for major medical and you're all set.
Some of these Primary Care Clinics charge well under $100 per month.

The negativity behind the ACA came from insurance company lobbyists....they spent hundreds of millions trying to convince people that the ACA was bad news.....the truth is if you're struggling to pay for insurance.....it might even be free....depends on your income......sliding scale type thing.
08:57 AM on 01/15/2012
This is why we are seeing little clinics sprout up in grocery and drug stores....they will become the Primary Direct Care first line providers. It should be an inexpensive way to go, but I was shocked when I was told that my insurance didn't cover a quick visit with the nurse for an rx for antibiotics for an ear infection. However, since the $50 was the same as it cost as a co-pay to see my ENT, I went ahead and did it. It was quick and convienient and no waiting.
11:41 AM on 01/15/2012
Wow finally we may get what many Third World countries already have, clinics in pharmacies that do not require doctor written prescriptions, but do provide medical advice and low cost drugs. We would have a lot more of this if our government was working for us, like ending health care insurance monopolies by removing their antitrust welfare. Then we would have competition and these little clinics would be everywhere. Cheaper, better health plans. I experienced this in Japan where the drugs cost $20 not $50.
HUFFPOST SUPER USER
orcinous
Obama has made things better.
02:23 AM on 01/15/2012
Yeah! This will put a burr under the saddle of those other insurance companies.
01:55 AM on 01/15/2012
Just an absurd idea all around.

If it's something you value, then you should be willing to pay for it. The single-payer should be the one receiving the service, not the community at large. Why should I subsidize the healthcare costs of morbidly obese type 2 diabetics who refuse to go on a diet?
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HUFFPOST SUPER USER
bigmaddy
Retired Union, USN
10:24 AM on 01/15/2012
I am a heavy person who don't have any diabetics but you fail to realize that alot of people are over wieght for a variety of reasons. My family has thyroid problems and it's a real struggle to lose weight and keep it of. You try living everyday of your life writing down every calorie you eat. I walk at least 30 minutes everyday which is a hardship because I have a disability that makes it a struggle to walk but I do. The idea of insurance or single payer is to spread the cost to many which makes healthcare affordable to all. You may be young now but you can rest assured you ain't going to stay young, old age will catch you faster than you think. That's the trouble with the right wing of this country they think only about themselfs without realizing that if we all pool our resources everyone does better even the rightwingers, because you never know what lifes going to deal you.
01:52 AM on 01/15/2012
California can't even take care of itself--THE PUBLIC OPTION IS A BAD IDEA. This article is nothing but Democrat spin. I live in CA--no one here thinks it's a good idea because the state cannot afford it.
HUFFPOST SUPER USER
james denton
01:57 AM on 01/15/2012
i live in California and think it is a great idea.
This user has chosen to opt out of the Badges program
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04:16 AM on 01/15/2012
I’m a native Californian, and I think it’s a great idea as well.
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K August
Research alecexposed
06:45 AM on 01/15/2012
So you think it's okay for everyone else to absorb the cost of health care for those that just go to the emergency room because they don't want to pay for insurance?
lobo7606......you can't have it both ways.
12:23 PM on 01/16/2012
Only regarding YOUR notions of what is available to the public. It's either Obama's way or the highway for you, huh?
HUFFPOST SUPER USER
MUDPUPPY
12:32 AM on 01/15/2012
And we know how well California is doing. California is the most screwed up state in the union.
HUFFPOST SUPER USER
james denton
01:58 AM on 01/15/2012
you do not know what you are talking about.
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HUFFPOST SUPER USER
midwestgirl1960
07:55 AM on 01/15/2012
Not from California are you?
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HUFFPOST PUNDIT
Chris1962
NYC
12:15 AM on 01/15/2012
>>>Not only did the public option idea not die, it is alive and well in California.>>> Where it's always belonged: at the state, not the federal, level.