Why We Shouldn't Fear the Public Option

People often forget, either due to distractions, blinding cynicism or a lack of education, how unique this country really is. The United States of America is a nation forged and grounded in a rich tradition of protest and persistent refusal to accept the status quo. In many ways this tradition has been in hibernation--recent decades will never be known as the years of particularly impressive citizen participation in government and policy. Indeed, the American people have become increasingly apathetic and stupid, but I believe that the spirit has remained alive--in fact, I predict that the drive to change our most negative aspects of society is building momentum; isn't it obvious?

Take the town halls on health care, for instance. Though CNN, FOX and MSNBC only cover the crazies, there is some remarkable dialogue going on--and not just by the supporters of health care. When it comes to the Public Option, there is a genuine philosophical debate to be had. Remember that the whole point of the American Revolution was to establish independence from an abusive and invasive government that taxed excessively and unfairly. We have come a long way since then, and have perhaps gone full-circle in many ways. I share many Libertarian concerns of the expansion of the U.S. government, excessive spending and the limitations placed upon civil liberties; not to mention our often tyrannical foreign policies. Indeed, the United States became the very empire its citizens died to defeat. People think I'm a big gov liberal, but the fact of the matter is that the federal government IS WAY TOO BIG! The War on Drugs is a fiscal and societal disaster, the Iraq and Afghanistan wars are squandering our treasure. The IRS ought to be torn down and replaced with a simpler tax code, and the Patriot Act ought to make every single American extremely wary of what leaders know about our personal lives. Not to mention the militarization of government that has seeped into the media and saturated our culture.

So when people say to me: "I just don't believe the federal government should expand! It's already too massive" I agree! The problem is that in this modern world, there are modern problems that require state intervention. Spying on Americans is not one of these exceptions. Drug abuse isn't either. Nor is Saddam Hussein or Ho Chi Minh! But to the people who believe the Public Option is some kind of government takeover and the onset of communism: should we not fight to end the excessive federal policies that actually hurt people? The War on Drugs fuels a culture of crime in the inner-cities. At least a million Iraqi citizens are dead because of the current conflict--not to mention the 4,339 dead American soldiers. But now you oppose a public health plan? A plan that will help your fellow citizens get the care they need? A report by the Institute of Medicine suggests that as many as 22,000 American citizens die annually due to the lack of an insurance policy--one that either could not be afforded or was cut by employers!

And let us not forget that the Public Option is an OPTION! While the true Left wing of this USA would really like a single-payer system, it is simply not going to happen with this legislation. Big Insurance is the most powerful lobby in Washington, and certainly has great influence on the bill--in other words, the argument that people will be forced to take the government plan is bullshit. The truth of the matter is that most people will keep their private plans; plans, by the way, made more consumer-friendly due to other reforms that will be in the final legislation (including the preexisting condition issue and the ability to choose your own doctors).

Though this is an expansion of government services, I want to tell you how the Public Plan is actually more economical and sustainable than the current system. You see, being private enterprise, Big Insurance seeks to charge as much as possible while providing as little as possible. I have no problem with capitalism (I am a Capitalist), but this is the reality of the basic operations of a firm. While this is perfectly acceptable in most sectors, health care is an entirely different beast. Since 2000, insurance premiums have nearly doubled! In 2007, the U.S. spent about $2.2 trillion on health care,* which comes out to approximately 16.2% of GDP--nearly twice the amount of the rest of the developed world! ** If you aren't worried yet, then you have read these numbers: by 2025, costs are expected to rise 25%; by 2082, 49% ! *** Oh, and did you realize that every GM vehicle is $1,525 more expensive because of employer-based health care coverage? Insurance is by far GM's biggest expenditure--even more than steel! ****

And the numbers go on and on. This is the financial argument, and it is all tied to the Big Insurance practice of driving up costs for higher profit margins, and making up for their clunky and inefficient administrative costs. Medicare costs are skyrocketing because they are subsidizing these inflating premiums, and this must be replaced. The Public Option must establish a much simpler and transparent system that injects competition into this stale and unsustainable market. It is fiscally sensical and it is moral.

But just any Public Option will not do. Next week I will tackle the question of "what must a Public Option look like in order to drive competition and cut costs?"

Absorb it, discuss it, and hopefully support it. Leave your comments below.

*Office of the Actuary, Centers for Medicare and Medicaid Services, National Health Expenditure Data for 2007. U.S. Department of Health and Human Services, available at: http://www.cms. hhs.gov/NationalHealthExpendData/02_NationalHealthAccountsHistorical.asp#TopOfPage

**Organisation for Economic Cooperation and Development. OECD Health Data 2008.

***P.R. Orszag, Growth in Health Care Costs: Statement Before the Committee on the Budget, United States Senate, (Washington, DC: Congressional Budget Office, Jan 31 2008), available at http://www.cbo.gov/doc.cfm?index=8948

****R. Wagoner, Testimony before the House Financial Services Committee, December 5, 2008.
http://thinkprogress.org/2008/12/05/gm-health-care-reform/