Unaffordable Costs Of Public Option Confirmed

WASHINGTON – As the unaffordable costs of the public option are made clear to voters, Bloomberg Law reports in a story titled “Public Option Experiment Hits Speed Bump as Premiums Don’t Fall,” that “[p]remiums aren’t dropping as predicted in Washington state’s first-in-the-nation experiment with offering health insurance plans based on Medicare rates.”  In fact, “average proposed public option rates 5% higher than 2020 Obamacare premiums.”  They explain: 

Washington’s experience setting up a public option plan highlights the difficulties for states weighing similar plans they hope will expand health-care coverage while driving down costs … It also could presage problems that a national public option plan could face.  Democratic presidential candidate Joe Biden is calling for a similar plan to shore up Affordable Care Act markets.  The average proposed public option premium for 2021 is 5% higher than 2020 average Obamacare premiums, Christine Gibert, policy director with the Washington Health Benefit Exchange, said in an interview.

This Adds To The Growing Body Of Research That Demonstrates That The Public Option Could Burden American Families With Unaffordable New Costs And Tax Hikes: 

• The public option “could require tax increases on most Americans, including middle-income families” and could “add over $700 billion to the 10-year federal deficit, with dramatically larger losses in subsequent years.” (Tom Church, Daniel L. Heil & Lanhee J. Chen, Ph.D., Hoover Institution, 1/24/20)
• A politically realistic public option could lead to a new 4.8 percent payroll tax on American families, which would eventually cost the average American worker about $2,300 per year in higher taxes – far higher than the combined Medicare payroll tax Americans pay today. (Tom Church, Daniel L. Heil & Lanhee J. Chen, Ph.D., Hoover Institution, 1/24/20; “Usual Weekly Earnings Of Wage And Salary Workers,” Bureau Of Labor Statistics, U.S. Department Of Labor, Accessed 2/3/20)
• Over 30 years, the public option would become the third most expensive government program behind only Medicare and Social Security – both of which are at risk for the seniors who rely on them. (Tom Church, Daniel L. Heil & Lanhee J. Chen, Ph.D., Hoover Institution, 1/24/20)
• The public option could add as much as $700 billion to the federal deficit in its first 10 years. (Tom Church, Daniel L. Heil & Lanhee J. Chen, Ph.D., Hoover Institution, 1/24/20)
• While proponents try to claim the public option could reduce costs by reimbursing providers at Medicare rates, recent history at both the federal and state levels demonstrates that putting politicians in charge of a new government-controlled health insurance system could lead to higher costs and tax burdens for American families. (Tom Church, Daniel L. Heil & Lanhee J. Chen, Ph.D., Hoover Institution, 1/24/20)