Budget Office: Public Option Would Cost More than Private Plans - Political Hotsheet - CBS News

(AP)

The government-run health insurance plan, or "public option," crafted by House Democrats would typically have higher premiums than comparable private insurance plans, according to a new budget estimate. Yet even though the public plan is weaker than liberals initially hoped -- thereby making it more expensive -- House Speaker Nancy Pelosi said in an interview with Politico Thursday that she does not want liberals to attempt to make it more "robust."

The analysis (PDF) submitted yesterday by the nonpartisan Congressional Budget Office bucks the liberal argument that a public plan would be cheaper for consumers than private insurance. While its administrative costs would be lower, the CBO reported, other factors would offset that.

A significant factor for the higher premiums would be the fact that House Democrats included in the legislation unveiled Thursday a public option that would negotiate its payment rates with medical providers. Liberals like Pelosi were inclined to include a public option that tied its payment rates to Medicare -- this would have made it cheaper, but moderate Democrats from rural areas complained that doctors and medical providers in their regions would not be paid enough.

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Moveon.org Issues Warning to Democrats Opposed to 'Public Option'(soros)

Moveon.org issued a warning Tuesday to any Democrat who might join Republicans to filibuster a government-run insurance option -- if you oppose the government option you will lose support from the organization.

Senate Majority Leader Harry Reid announced Monday that the Senate's version of a health care reform bill will include a so-called public option. Moveon.org issued its e-mail to its supporters threatening revolt one day later.

The group said it surveyed its members over the weekend and found that "93 percent of MoveOn members agreed that any senator who helps block an up-or-down vote on a health care bill with the public option should lose the support of all five million of us -- no donations, no volunteering, and no help getting out the vote."

To ensure conservative Democrats will not oppose the public option, the group is launching an "emergency campaign" to urge them to support an up-or-down vote

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