From his article, "An option for public: less government, more choice":
A government-run health insurer would radically tilt the health-insurance playing field. It would amount to a new entitlement program, able to undercut the price of private insurance by squeezing hospitals and doctors, reimbursing them at below-market rates. "Just like Medicaid and Medicare," which also underpay medical providers, the public option would force hospitals and doctors to charge private insurers more. Insurers would be compelled to raise their premiums, eventually losing millions of customers to the government plan.Instead, he recommends the following free-market reforms:
Obama insists that any public option would have to be self-supporting, properly balancing its premiums and risk and not expecting the government to cover its losses. Sound familiar? The same assurances were made about Fannie Mae and Freddie Mac.
* Tear down the barriers to buying insurance across state lines(Read the full text of "An option for public: less government, more choice".)
* Repeal mandatory benefits that make health insurance needlessly expensive
* De-link health insurance from employment
These are all excellent ideas. Let's hope our politicians are listening!