A new report from the Urban Institute argues that a “strong” public option — one that is triggered in the event that overall growth in national health spending exceeds a pre-determined target — may do more to control health care spending
than the public option proposals offered in existing legislation:
In the absence of enough political support to pass a strong public option at this time, a “trigger” for a strong public option should be considered for inclusion in health reform legislation whether or not a weak public option is included as a political compromise. Even the threat of such a plan being triggered offers the potential to affect market dynamics between insurers and providers.
The report says that the Senate and House’s public option provisions (which require the public plan to independently negotiate rates with providers) hold little hope of lowering costs in areas of the country with high provider concentration. In areas where hospitals have “too strong a market presence to be excluded from insurer networks,” hospitals could dictate prices, stripping the public plan of its ability to negotiate cheaper rates, the report warns. According to a 2006 study, 86% “of large metropolitan areas were considered to have highly concentrated hospital markets.”
moreWhat utter bullshit.
Here's an idea: let's start with the current public option, and trigger medicare rates "in the event that overall growth in national health spending exceeds a pre-determined target."