Why a Public Plan Is So Important

Let me be clear. It would only be an option for those who don't have insurance. No one would be required to choose it, and it would not impact those of you who already have insurance. 
— President Barack Obama, joint session of Congress, Sept. 9, 2009

Most Americans Want a Public Plan

Despite a lot of angry words and opposition posturing, surveys show that nearly three out of four Americans want a public plan option included in a health care reform bill.

"That gets lost in all the rhetoric distorting the debate," CWA Executive Vice President Annie Hill said. "Most people support a public option, even if they don't expect to choose it for themselves. They understand that far from limiting choice, it would reinvigorate the free market. And if they're laid off, they'd have the peace of mind of knowing they can still take care of their family's health."

Far from being a government "takeover" of health care, as opponents charge, a public option is expected to serve only a small part of the population. The nonpartisan Congressional Budget Office estimates that only 5 percent of Americans would choose a public plan, "but for that 5 percent it literally could be the difference between life and death," Hill said.

Who's Afraid of Competition?

An industry marked by bloated CEO salaries — the highest paid health insurance CEO is making $38.1 million this year, according to Forbes magazine's compensation survey — and a business plan that's built on denying workers' claims whenever possible could stand some competition.

The private insurance industry is upset that a public plan could negotiate drug prices and enjoy "economies of scale" to lower administrative costs, said former Labor Secretary Robert Reich.

 "Why exactly is that unfair?" he asked in a Wall Street Journal op-ed. "If the public plan negotiates better terms — thereby demonstrating that drug companies and other providers can meet them — private plans could seek similar deals… If the public option pushes private plans to trim their bureaucracies and become more efficient, that's fine."

For American consumers, it's a win-win.

'Keep Your Hands Off My Medicare' 

Surveys show that an overwhelming 94 percent of seniors with Medicare coverage are satisfied with their care. A public option would enable participants to pick their own doctors and make their own health care decisions, just like Medicare does now.

Since the 1990s, seniors and the disabled on Medicare have been able to choose a private option known as Medicare Advantage. Despite aggressive marketing by private insurers, only one in four Medicare-eligible Americans has signed up.

The government pays these private insurance Medicare plans an additional 14 percent payment, on top of what Medicare would charge for the same services.

One of the plans jointly marketed by United Health and AARP in Florida requires a $325 per day co-pay for hospital stays up to a $3,350 deductible. Compare that to a flat $1,068 deductible for stays of up to 60 days with regular Medicare, the Economic Policy Institute said. "The history of Medicare Advantage plans shows that a public plan is a necessary component of real health care reform."

Jacqueline Kuma, TNG-CWA Local 31026, Buffalo, NY

'Walk a mile in my family's shoes'

My mother died of complications from lung cancer in 2006. Medicare covered the cost of her hospitalization and treatment. Neither of these on its own would have been enough.

After it was all over, we were notified of the total costs: It came to more than $42,000 — almost as much as I paid for my house.

Without Medicare, these costs would have fallen on me and my siblings, and none of us has ever had much money. People like us and like my mother, who had no savings or property when she became ill, would have no recourse without Medicare. To the people calling it "socialism" and claiming that a public insurance option for all Americans is somehow un-American, I say, "Walk a mile in my family's shoes.

Israel Barreto, CWA Local 1101, Bronx, NY

'I Am at Peace Knowing Medicare Will Pay My Mother's Bills'

My mother is 83 years old and has suffered from hypertension and diabetes for many years. Medicare has taken care of all of her medical bills.

In July, she had to have open heart surgery to replace a valve in her heart and perform a bypass on one of her arteries. Medicare has paid for all of her doctor's visits, the operation, stay at a rehabilitation center, a hospital bed for home and other necessities.

She is recovering slowly and will need a lot of additional medical help. However, I am at peace knowing that Medicare has no maximum cap and will pay all of her bills. Imagine if we could all have that peace of mind.

The way things are now, even if you have good insurance, there's no guarantee that your insurance company won't drop you or fight you every step of the way if you get sick. And even if it pays its share, you could owe tens of thousands of dollars more. Why is forcing people into bankruptcy more acceptable than making sure they have affordable health care?