The Cheap Public Option

Posted on 07/22/2009 at 9:32 am by Bob Cesca

Following up on Michele Bachmann’s quote below, I thought I’d do some math today.

I clicked over to one of those health insurance shopping sites, entered my family’s information (family of three, non-smokers) and the top rated, best selling plan on the site showed a $476 monthly premium with a $250 deductible, 10% co-insurance, and $20 doctor’s visits.

A government plan that’s 40% cheaper, as Bachmann noted, would cost around $286 per month — a $190 discount. It wouldn’t exclude us for preexisting conditions. It wouldn’t randomly deny us coverage. It wouldn’t conspire to cancel our coverage as soon as we got sick. And we could take it with us wherever we go.

However, the public option would function similarly to Medicare which carries a $96 monthly premium per person for a married couple making less that $170,000 a year. There’s a $135 deductible and a 20% co-insurance.

(Incidentally, the absolute most expensive Medicare premium is $308 per month — paid by couples earning a massive $500,000 a year.)

But the public option isn’t just about the low premium, it’s about the security. It’s about knowing that you’re paying into a system that will always be there.

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  • scribblechic

    Gosh Bob! You’re awesome. You provide me with so much ammunition. I’m killing these dumbasses around me that are buying into the mainstream republican media talking points. You’ve helped me bring a lot of peeps to the light.Thanks for the work you, Lee and everyone else that are looking out for humanity are doing.

  • Jan

    Good job Bob.

  • http://nanotyrnns.blogspot.com/ Nanotyrannus

    “And we could take it with us wherever we go.”That’s one of the pluses that I think is not being pushed enough, that you are covered no matter where you work. I think that’s one of the greatest fears of the Right. We’ll no longer be slaves to their low wage/low benefit jobs that we can’t afford to leave. We’ll be empowered.

  • indyinwc

    $476.00 seems way too low for a family of three with those low copays. Are the insurance companies dropping premiums in an effort to be suddenly competitve? I pay about 300.00/mo. for just myself and have a 7000.00 deductable. No pharm plan, no dr visits, no tests. I must pay for anything and everything until I reach that 7 grand. So, really, the policy I have is just to keep me out of really bad debt if something happens.

  • Terri

    You know, I still find it stunning that those on medicare have to pay anything at all.We always try to get the “best deal” and “pay the least” but the system always wants us to pay something out-of-pocket.If it comes from my taxes, it should be 100% covered.I don’t pay a portion to go to the park, orto have the fire department put a fire out, or to usemy free public library.We think we’re “lucky” if they keep our out-of-pocket cost affordable.We need to stop asking for something “affordable”and start demanding that our tax dollars work for us.

  • http://www.bobcesca.com Bob_Cesca

    $476.00 seems way too low for a family of three with those low copays. Are the insurance companies dropping premiums in an effort to be suddenly competitve?

    Well, I would very likely be denied this coverage anyway — preexisting conditions. And prescription coverage is optional. Nevertheless, it was listed as the “highest rated” according to customers. Weird.

  • Steph in SC

    Those figures might sound great, but when I was shopping for insurance it gave great numbers online but once I started speaking with a “real” person the figures started going up! Try, for a family of four, no smokers, no drinkers, $500 per month and $3,000 deductible and high co-pays!Now, we are with a different company, but are paying $650 a month, $3000 deductible, $30 office visits, BUT only covers 50% after meeting deductible! Total crap! And I just had to have a procedure done that they are saying they won’t pay for because it was elective, huh, NO, it was done because I was presenting some symptoms of a particular cancer!

  • roxsteady

    Great work Bob! That’s it in a nutshell. The fact that there would be those who could leave for a public plan is the whole idea. That we could choose. Right now their monopoly is the only game in town. That will change! I read on the dailybeast that Nancy Pelosi told the rank and file that they are still on schedule to pass healthcare before the August recess. That would be a serious smack down to the media for their doom and gloom bullshit coverage. I’d love it if this could be done. The Dems could leave for vacation basking in the glow of another ass kicking given to the GOP. While the media is left trying to explain why they didn’t see it coming. Stupid Bastards!

  • Jan

    I thought I read somewhere that if you are insured under your employer-whether for free or if you pay for it-that you would not be allowed to drop that insurance and go with the public option (because it could be cheaper). Obviously if you quit that job or get laid off or fired then you could sign up for a public option. On the other hand, would we be allowed to opt out of an employer’s insurance and stay or get on the public option?I could be wrong.

  • http://nanotyrnns.blogspot.com/ Nanotyrannus

    I think Jan the rules will be that employers with more than 10 employees would not be able to just cancel their plans and dump all their employees onto the public option. I think the whole idea is for us to be able to choose which we want, and of course, most will choose coverage that doesn’t deny care and is cheaper than private insurance.

  • http://nanotyrnns.blogspot.com/ Nanotyrannus

    You mentioned something, though, that just occurred to me. What if I’m unemployed? It’s hard to pay for premiums, no matter how cheap, if you have no income. I haven’t dug too deep in that issue if anyone has any info on it.

  • http://politicalpartypooper.wordpress.com/ Political Party Pooper

    Yet another point I will be making at my blog is the fallacy of rationed health care in a public system. If anyone comes at you with that crap, tell them to open their health insurance plan handbook to the “Exclusions and Ommissions” section, and tell you again how, suddenly, health care will be rationed any ifferently than it already is. Tell than because pre-existing conditions will have to b covered, there will LESS, not more, rationing of health care than ever before.Then, ask them how they like having their group plan premiums socially subsidized by the younger people in their group.Finally, just tell them to suck it up and deal with it like the staunch, fervent, patriotic conservatives they are. Real Americans don’t complain about helping their neighbors.

  • http://politicalpartypooper.wordpress.com/ Political Party Pooper

    Good god, my editing is for shit.

  • http://www.bobcesca.com Bob_Cesca

    >>>>You mentioned something, though, that just occurred to me. What if I’m unemployed?I believe there will be subsidies available for these sorts of situations.

  • http://politicalpartypooper.wordpress.com/ Political Party Pooper

    By the way, Bob. I sell private health insurance as part of my advisory practice…can’t stand the crap. I constantly tell my clients to pray for a public option.But in case you were wondering, that rate you were quoted is a one year teaser rate designed to grab your business. Next year, your premiums would cost at least fifteen percent more, and probably as much as thirty percent more. For damned sure they’ll never go down. That’s is not just common to the industry, it’s industry POLICY.

  • Ken

    Bob,Nice research and analysis, thanks. I see th ekey points as afforadability, access (incl pre-con’s) and portability. I’d think the private sector, other than insurance companies, would be all over this.PPP,Worse than your editing, I actually understood what you were saying! Good Gawd!

  • Jan

    I am unemployed and I just assumed we wouldn’t have to pay anything. I don’t see why they just don’t roll the unemployed into Medicaid. What worries me is they will take a subsidy out of our unemployment money to pay for us. And since we can barely pay our rent on unemployment this would not be good to take more away from us. I haven’t seen much on how the unemployed will be handled. Certainly by 2013 i will be employed again.

  • mattpd

    I apologize if this has already been asked. Is there a resource or link that can show me the details of what such public option would look like, cost, etc? I feel like I am personally under informed about it.Thanks!

  • http://www.bobcesca.com Bob_Cesca

    >>>I apologize if this has already been asked. Is there a resource or link that can show me the details of what such public option would look like, costMatt — there are various forms of the public option in the works, so there isn’t a definitive example. But I’ve been using Medicare as the standard. The public option would basically be Medicare, but for anyone who wants it.

  • DaBomb

    Man, I just finioshed reading some of the comments from a Mother Jones article critiquing the health care reform, since when did Mother Jones become the bastion of libertarian wankery?

  • EGB

    I tried to purchase insurance from an online site. Did my research, chose the best plan for me (not the cheapest). Denied. I had suffered 2 injuries 2-3 years ago. Broken wrist, and torn ligament that was surgically repaired. However, the companies COULD let me know about the “high risk plans”, but I would only be eligible AFTER I exhausted my $600 a month COBRA option, in 3 years. FYI-I also know 3 other people who have had the same experience recently.