Health Care Debate: Government-Run Option May be Out

The latest news suggests that the idea of a government-run health care option is running into heavy resistance.  Opponents of the government option say that it would eventually lead to a one-payer system by putting all private health insurance companies out of business.  On the other side of the coin, the administration had been saying that a government option was a good idea because it would keep the private companies “honest,” but it would not run them out of business.  That said, I think there is little doubt that the government could/would be able to set prices below the point where for-profit private insurers could be viable.  And do you believe a government-run organization (where employees’ pay levels are typically based on seniority and not work efficiency/productivity) would be able to administer health care more efficiently, at a lower cost than a company whose employees are paid based (incentivized) on the quality of their work?  I think overall cost in the health care system (which includes administration) would increase with a government-run plan.     

-Billy Ray

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