RMTB* – Competitiveness of Public Health Insurance Plans

Apparently one of the big criticisms of a government-run health insurance plan by its opponents is that it will drive private insurance companies out of business.  But given the presumption that a government-run plan is by nature more bureaucratic and less efficient and that a government-run plan won’t be able to cherry-pick its patients based on criteria like pre-existing conditions, what does this say about the cost structure of a private sector health insurance company if it can’t successfully compete with a government plan?

*RMTB = Riddle me this, Batman

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One response to “RMTB* – Competitiveness of Public Health Insurance Plans

  1. That\’s not a good argument, because the government plan does not have to make money; it can always use taxpayer dollars to undercut the private companies no matter how effeciently the private companies are run.

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