Axios: State Public Option Plans Keep Hitting Obstacles

As some states look to public option plans to lower health care costs, and expand access to care, Washington-state and Colorado serve as cautionary tales for implementing state public option plans.

State efforts to control health costs through public options are stalling in the face of resistance from providers and lackluster enrollment, even as talk of a federal version recedes.

Why it matters: The states’ underwhelming attempts offer an ominous warning for lawmakers seeking to lower health costs: Insurers and providers aren’t going to willingly cooperate with programs that threaten their profits and revenues.

• And lower health care costs are, in the end, a hit to someone’s profits and revenue.

The big picture: The public option was supposed to resemble government-run health care for moderates uncomfortable with “Medicare for All.” But it flopped on the first try in Washington state and is drawing meager interest there and in Colorado.

• Nevada, New Mexico, Minnesota and Connecticut are among the other states either weighing bills to create public options or nudging similar plans forward.
• A key will be whether they can attract more consumers and save money through partnerships with insurers or whether they’ll have to force the carriers to participate, a recent Commonwealth Fund comparison found.

Read the full article by Arielle Dreher from Axios.