States May Get Public Option Option

Senator Harry Reid apparently has slipped the state’s right to opt out of the public option into the Senate version of the Health Bill, making the Senate bill Harry’s Homemade Health Bill. This would be a tragic concession to make to buy votes.

Maine’s Senators Collins and Snowe may be swayed with this wrinkle. Given Senator Lieberman’s certain opposition, this gives the Democrats a possible one vote margin. I still don’t like those odds, and Mr. Reid still needs to sweeten the bill with local pork to pull in Senator Landrieu of Louisiana, as well as to two other Democratic holdouts, Senators Lincoln of Arkansas and Nelson of Nebraska.

Allowing states to opt out of the public option would be a disaster for the nearly poor. The very poor will still get Medicaid. But people in the income range above the poverty line, up to about $50,000 per year will be the big losers. These people are too rich for Medicaid and too poor for private health insurance. Not having access to affordable options will ensure they remain uninsured.

The states that have the poorest health care record- and the most uninsured – are likely to be the first states to jump on the opportunity to preserve the status quo. In case you’re wondering who these state are, they’re all the southeastern states. This shouldn’t surprise anyone. The southern states have no limits on how far they will go to suppress the underclass. Remember slavery was a State’s Right, held in such high regard by the south they declared independence and died to defend it.

The public option also threatens the very life of insurance companies. Any opportunity to kill it in any state will be to their benefit. Having the option to opt out will be a battle cry for the insurance industry. They’ll pad the pockets of state legislators to get the option out. Insurance companies know they can’t compete with the government. They enjoy a near monopoly in most southern states and will work to preserve the status quo wherever they can.