The Public Option is Back: This Obama Going to Bail Out the Insurance Companies Too?

Senate Majority Leader Harry Reid announced on Monday, October 26 2009, that he intends to include a public insurance option to the health care reform bill. Individual states will have the ability to "opt out" of the plan if they see fit. The state opt out provision was put in place to encourage Republicans and Democrats alike to support the struggling bill. Senate Olympia Snowe of Maine, the only Republican on the Senate Finance Committee to vote for the Democratic plan is opposed to the opt out provision. Stating that all states should work together to fix our ailing health care system, not individual one.

Another idea floating around Washington is the Public Option Trigger which would force insurance companies to make changes to their underwriting guidelines to insure individuals with pre existing conditions and lower the cost of premiums for those who currently have coverage. If those changes failed to occur within the required period of time, the public option plan would be triggered causing increased competition between them, which would theoretically drive down their rates. This public option plan would have to meet the same fiscal requirements as other private plans.