There are a bunch of folks out there who think the public option plan will be free or very low cost. Unless the government comes in with larger and larger subsidies, this article explains how the public option will probably have higher premiums than some private plans. Is this what the Democrats meant when they said competition is good?
“That isn’t to say that the public option can’t still do some real good, as I argue here. But there’s also a chance for it to become a real disaster. The most important factor here will be the strength of the risk adjustment in the exchanges, so keep an eye on that.”