Senate Finance Committee Rejects the Public Option

Wednesday September 30, 2009

As a kid, prior to being old enough to drive, I remember sitting in the back seat of an old station wagon while adult relatives discussed Ohio moving to mandatory auto insurance. See, at the time, auto insurance was optional. That meant when some truly horrific accidents happened those involved could not pay their hospital and repair bills because the other guy was uninsured.
But, what I remember most, was hearing a claim by some insurance industry representative that auto insurance rates would decline by 25% or more if everyone was required to purchase auto insurance. I recall an uncle stating that claim was a lie. Seemed harsh. Harsh, but prescient. Ohio did pass mandatory auto insurance, rates never declined, and competition was non-existent.

Don't get me wrong, mandatory car insurance is a necessity and a great public policy decision. But, without a public option, or an extremely limited option that kicks in only after some pretty extreme circumstances, the poor cannot afford to drive to jobs increasingly far away and the law makes criminals out of the uninsured -- just look at your local court's docket.
Yesterday, encouraged by the leadership of a Senator who represents fewer Americans than reside in my county, the Senate Finance Committee rejected a public insurance option as part of health reform. This could be considered an effort at bi-partisanship, or one could look at who the Chairman's top contributors are and draw your own conclusions.

In the face of a personal mandate and requirement on business to carry health insurance, it is not reform for there not to exist a viable public option readily available and affordable. In my market, premium rates vary so dramatically that there is really no reason to the rates. One insurer requires over $800 per month, while comparable coverage (limited to a pretty decent HMO) exists for $242 per month including a dental plan. $800, and I am not in business. $242, and I am in business and could afford an employee and provide that health benefit. The public option needs to exist in order to allow people to actually afford this envisioned mandate.