The Public Option Revisited

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Ezra Klein quotes Congress Daily on the cost of healthcare reform that includes a public option.  The estimates are from the CBO:

The original House bill required the public plan to pay providers 5 percent more than Medicare reimbursement rates. But as part of a package of concessions to Blue Dogs, the House Energy and Commerce Committee accepted an amendment that requires the HHS Secretary to negotiate rates with providers. That version of the plan will save only $25 billion.

In total, a public plan based on Medicare rates would save $110 billion over 10 years. That is $20 billion more than earlier estimates, a spokesman for House Speaker Pelosi said.

So a public option would save anywhere between $2 billion and $11 billion per year depending on whether or not it’s based on Medicare rates.  That’s savings to the government, and it’s based on the fact that the public option would lower the cost of insurance and the feds would therefore have to pay lower subsidies to low-income households buying coverage under the individual mandate.  However, if the private plans lower their prices to compete with the public option, then everyone buying insurance would save money, not just low-income families, and the total cost savings to consumers would be much higher.

It’s hard to say how significant this would be without seeing the actual CBO report, but in any case the point is clear: the public option saves money.  Supposed “fiscal conservatives” who oppose the public option are either poorly informed or simply hypocritical.  It’s not only good for the public, it’s something that’s more fiscally responsible than a healthcare plan that’s purely private.  That’s why we need it.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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