Getting to a Public Option that Contains Costs: Negotiations, Opt-Outs and Triggers

Getting to a Public Option that Contains Costs: Negotiations, Opt-Outs and Triggers

Abstract

This paper argues that the debate over the public option has gotten lost in rhetoric over the size and role of government. It underscores the central argument that a public option would likely have lower premiums than current private plans, with savings resulting from lower administrative costs, and average provider payment rates that are lower than what private plans currently negotiate. The authors also assess two approaches being considered to improve the political feasibility of a public option: (1) allowing states to opt out of a public option; and (2) delaying implementation of a public option until a triggering event related to health care costs occurred.

Research Area: 

Centers

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