Why a public health plan option isn’t anti-competitive

March 31, 2009

Managed Care Matters – Perhaps the biggest battle brewing in Congress in the health reform war is that of the public option. As I said back in January, “Opponents claim that the Feds would have an unfair advantage due in part to their sheer size; they’re just so big that private plans could not compete.” Some Republicans and their affiliated think tanks continue to complain private health plans will not be able to compete with a public option as the public plan will just dictate pricing to providers, and they don’t have the capital and financial stability requirements forced on private plans.

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