The Public Health Plan Option.
 
It's getting a lot of debate these days. The latest polls show over 60% of the general population supports some type of public option.
 
Supporters of the option argue that in some regions, there's one insurance company holding a monopoly on the market, eliminating healthy competition.
 
Most against the public option argue that an individual mandate, guaranteed issue, and subsidies for those who have trouble affording it combined with allowing companies to cross state lines will open up markets, eliminating the need for a public option.
 
The fact is that for many, insurance is a difficult to understand concept.
 
And so when people are denied coverage, or companies pull from a market, many scream bloody murder, not fully understanding the events that led up to such.
 
So what's the truth? Freedom in the insurance world is a flawed system. We allow people to come in and out as they please.
 
The result is that many choose not to buy when they can afford, and so in response, insurance companies must protect themselves from those who wait until it's too late.
 
This newsletter is obviously leaving out a lot of complexities. I've purposely left out a discussion on cost shifting from Medicare, medical duplication, tort reform, over utilization and more.
 
It's because I wanted to discuss this from an insurance professional's perspective.

 

We do need to take care of everyone. That one person dies because of lack of treatment is unacceptable.

 

But we also need to be firm on a mandate. If everyone deserves protection, then everyone must pay their fair share.

 

Fair competition among insurance companies combined with a new set of rules will prove to be both cost effective and sustainable.