Public Health Insurance Option Won’t Be Available to Most
Despite the intense debate currently swirling around the government-run health insurance option in health care legislation that is making its way through Congress, most Americans will not have access to this plan if it does pass. Even under the most expansive versions of what has come to be known as the “public option”, 90 percent or more of Americans will be shut out from it.
Both the House and Senate bills severely limit the public plan to very small businesses, people who cannot get health insurance, or those whose health care costs are greater than 12.5 percent of their income. Nearly everyone currently covered by an employer would not be able to opt into the government plan.
Under the current bills, the government-run insurance option would be made available through Web-based insurance exchanges. But even those who are unhappy with their current health insurance plan would be locked out of these exchanges, which is likely to surprise many people.
Moreover, the public option health plan is not likely to be affordable to most. Health care experts estimate that a family of four earning $66,000 could pay an estimated 19 percent of its income on health care, under some versions of the bills. That comes to $12,540 per year, or over $1000 a month – a level higher than many people pay today for their private health insurance.