FACT CHECK NO. 5: The Level Playing Field
Email ABC News’ Rick Klein reports: President Obama said that a public option for health care won’t drive private insurers out of business — that it will “keep private insurers honest.” Private insurers, he said, should be able to compete with “just one other option,” as long as the public alternative is subjected to the same fees and regulations as private insurers. “We’re not talking about an unlevel playing field; we’re talking about a level playing field,” the president said.
But many of the president’s Republican critics argue that a public plan by definition would present an unlevel playing field. The public entity wouldn’t have to make a profit, and would be run by the same government bodies that regulate the industry. “It’s like putting an elephant in the room with some mice and saying, ‘Okay fellas, compete,’ ” Sen. Lamar Alexander, R-Tenn., said last month.
Visit ABC News’ special section on health care here.
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The three largest health insurance firms in Washington State – Group Health, Regence and Premera are non-profit (even though some of their CEOs are paid over 500,000 a year)so the issue of “making a profit” doesn’t matter here.
Since many clinics including Mayo already won’t take medicare assignment and many doctors won’t take Medicare patients any longer I am not sure how expanding a program that doctors won’t accept will work?
Posted by: jennifer england | June 25, 2009, 1:21 am 1:21 am
No fact is checked in this ‘fact check.’ It’s true that “Republican critics argue that…”–but is their argument sound? That would be a nice fact check.
Posted by: Jeremy | June 25, 2009, 5:59 am 5:59 am
“a public plan by definition would present an unlevel playing field. The public entity wouldn’t have to make a profit”
I love this ‘arguement’: Public health care would kill private because it would be cheaper for equivalent care*. Heaven forbid with reduce our healthcare costs!
*If private insurance offered better care, then that’s their competitive advantage – the same one that lets $20 copay programs compete with much cheaper ones that have a $2000 annual deductible and then $50 copays.
Posted by: jhw539 | June 25, 2009, 9:28 am 9:28 am
“But many of the president’s Republican critics argue that a public plan by definition would present an unlevel playing field. The public entity wouldn’t have to make a profit..”
A generation ago, almost every insured American was insured by a non-profit insurance – like the “old” Blue Cross. Then for-profits entered the field and used their leverage from profits on life, property, etc. insurance to take initial losses on health insurance and drive the non-profits out of business or into for-profit mergers. Then they raised their rates to rake off 6-10% of all health care dollars as profits and to flood the market with so many different plans and networks that 25% of health care dollars now go to paperwork.
It would be extremely fitting if the for-profits were put in a tough position by a non-profit agency – the same entity they drove out of business themselves!
Posted by: The_Mick | June 25, 2009, 9:37 am 9:37 am
How is this a fact check? We all know that the playing field will either be level or not level. Alexander’s claim is no more relevant and based on facts than Obama’s f one was to judge by this article.
Many insurance companies have near-monopolies in their states, make more money if the deny people HC when it comes down to it and lobby congressmen to stall reform despite the fact that reform needs to happen. The government should play fair but if the insurance companies can’t handle fair competition outside of their cushy system, they can burn.
Posted by: Axel | June 25, 2009, 10:21 am 10:21 am
Here is the “beef.” A large portion of the money spend on health care is not spent on health care! Huh? That’s right! A ton of money is spent on insurance and billing. Billing can go paperless with biometric signatures… saving tons of money…The insurance companies NEED competition… right now they “cherry” pick and leave others out. They are afraid of losing profit. So be it! They make too much money NOW!
Posted by: Dan | June 25, 2009, 10:19 pm 10:19 pm
Oh.. and one more thing… whatever Congress gets for health care… everybody gets… no exceptions.
Posted by: Dan | June 25, 2009, 10:20 pm 10:20 pm