Senate Majority Leader Harry Reid (D-Nev.) announced Oct. 27 that he is sending a health reform bill to the Congressional Budget Office that includes a public option, but will give states the choice to opt out.
Reid said he would bring the bill to the floor for an open debate and amendment process when the CBO has estimated its cost.
This marks a key step in moving health reform forward. The House committees with jurisdiction over healthcare reform completed their bill this summer. The Senate has been held up over the public option and other issues. The compromise of offering states the opportunity to opt out of a public health option may help to garner the votes in the Senate needed to pass health reform.
"Patients and doctors have spoken out overwhelmingly in support of a public option as part of the way to provide more affordable care while making private insurance companies more honest, higher-quality providers," said Vivek Murthy, president of Doctors for America. "As physicians, we unfortunately see patients caught in our broken healthcare system every day."
The public health option would provide government-run healthcare, similar to what seniors have with Medicare, to those who can't purchase healthcare through their employers. The CBO projects 10 million to 11 million individuals will accept the public option by 2019.
President Barack Obama has promoted a public option as providing security to those who don't have healthcare coverage or who may lose their coverage.
Some Democrats and most Republicans argue the public option will threaten the private health insurance market.
Some stakeholder groups are also opposing the plan.
"A new government-run plan would underpay doctors and hospitals rather than driving real reforms that bring down costs and improve quality. The American people want healthcare reform that will reduce costs and this plan doesn’t do that,” said Karen Ignagni, president and CEO of America’s Health Insurance Plans. "The divisive debate about a government-run plan is a roadblock to reform. It’s time we focus instead on broad-based reforms that will ensure the affordability and sustainability of our healthcare system."
Sen. Charles Grassley (R-Iowa), ranking member of the Senate Finance Committee, said a government-run public option will cause private insurance companies to raise the cost of premiums.
"Let’s hope Democratic leadership and the White House aren’t willing to push a bill that forces 200 million Americans to pay higher premiums unless they enroll in the new government plan," he said. "But that is certainly what is sounds like."