The public plan is pitched as if it would simply encourage competition and provide another choice for consumers. But a government-run plan is not just another plan, offering just another choice. It is designed to undercut private insurance.
A government-run plan is dangerous for three reasons: One, it would be cheaper for employers to stop offering private insurance and [instead] funnel their employees into the government-run plan....Two, the government-run plan would use the coercive force of government to dictate the prices that could be charged by others — by doctors, nurses, and hospitals —
in a way that private entities cannot. Three, the government-run plan would be subsidized by American taxpayers, while private plans are not.
Let no one be deceived into thinking that Congress would not subsidize the government-run plan. Once in place, Congress would favor it with all kinds of innovative provisions....HR 3200, for example, would offer low-income subsidies — but only for those who choose the government-run plan.
Financial subsidies for a public plan...would be financed...by taxpayers in all fifty states. States would not be allowed to opt out of having their residents pay these federal taxes. They would only be allowed to opt out of receiving their share of the federal subsidies....What state legislator would vote to do that?
The state “opt-in” is a transparently false choice.
