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TaoWarrior

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#2

While I would call it far from perfect a public option is a huge step. Right now insurance companies have a stranglehold in the market most areas only have one or two insurance options so they can jack up deductibles and rates to their hearts content and there isn't much a consumer can do.

Sadly it's the states that have caused that issue for consumers through regulations that make it so an insurance company has to jump through so many hoops to operate in a market that it's not worth it for them to set up shop everywhere.

A public option could cut through that and give the entrenched insurance companies much needed competition. However the public option should not be so heavily subsidized that insurance companies can't compete then we would sacrifice quality. However right now the lowest deductible even offered in my area is 2500 per person. A plan with a 7900 per person deductible is 920 bucks a month for my family of 3. So a potential cost of 26000 dollars a year, the lowest max potential cost of any plan in my area is 24,000 annual. If a public option came in with say a 5k deductible at 1000 bucks a month it would put the max at 22k so assuming the insurance companies are pricing fairly (80/20 rule working) then the public option would have a 10% overhead to work with for administrative costs which is more than what medicare is running.

Would insurance companies respond to the competition? Free market says so but it's been so long since any business (especially health care) had to deal with a free market who knows.

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