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The Queen Of 'Reasonable' Republicans Commands: No Public Option For You!

As Jason Rosenbaum points out, Queen Olympia's proposal is just another way of putting the final nail in the public option coffin. You going to lie

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As Jason Rosenbaum points out, Queen Olympia's proposal is just another way of putting the final nail in the public option coffin. You going to lie down and take it? Call your congress critter today:

Olympia Snowe's trigger is a plan to kill the public health insurance option. Not kill it as in make it weaker, but kill it as in make absolutely sure it will never, ever come into existence.

Senator Snowe's trigger is literally a catch-22, defined by Wikipedia as "a set of rules, regulations, procedures, or situations which present the illusion of choice while preventing any real choice."

Mike Lux explains:

The legislative language says that a public option will be set up in a state in which health care is not affordable to 95% of the state's residents, but it defines affordability as after the new tax credits that are written into the bill to make health care affordable.

Let's break that down.

In Snowe's trigger amendment, if affordable coverage is not available for 95% of a state's residents, then you get a public option in that state. While there are issues with state-based public health insurance options, the catch-22 comes with Snowe's definition of affordability.

Affordable is defined as 13% of income. So, if there is no plan in the exchange that costs less than 13% of a person's income, we'd get a public health insurance option. But that calculation of what a plan costs is made after the government pays out subsidies or employers pay their share. And therein lies the catch-22.

Max Baucus's bill caps out-of-pocket costs for people buying insurance in the exchange at 12% of their income. Therefore, after you add in government subsidies, costs will legally always have to be below 12%. The insurance industry can raise their rates as much as they want and government will make up the difference. The trigger, if passed, will never trigger. Not ever.

(This opinion has historical weight - there is a trigger for prescription drugs in Medicare Part D. So far, after 6 years, it still hasn't been triggered. Meanwhile, the pharmaceutical industry rakes in the profits and seniors get screwed - a Families USA report [pdf] showed that private drug prices were an average of 58% higher than prices the government could have obtained through a public option. The fact that this trigger was never triggered costs government and seniors hundreds of billions per year, money that goes straight into the pockets of private pharmaceutical companies.)

It's clear: No public health insurance option anywhere in the country will ever be created under Snowe's trigger amendment.

The trigger amendment isn't a fig leaf. It isn't even a co-op. It's a plan to kill the public health insurance option outright, and give taxpayer money straight to private insurance companies.

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