The Power of A

In an interview with the Associated Press, Maine Senator Olympia Snowe (R-ME) outlined her support for a public plan with a trigger option as a possible compromise to the stalemate over inclusion of a public plan in comprehensive health care reform.

The trigger option would mean a government-run insurance company would only come into existence if private insurance companies failed to enact specified reforms. Senator Snowe stated her opposition to a public plan that is immediately created, saying: “If you establish a public option at the forefront that goes head-to-head and competes with the private health insurance market … the public option will have significant price advantages”

However, in the interview she expressed a desire to reform the insurance market. “I don’t think we can entirely depend on the private insurance market to deliver. They haven’t delivered thus far, and that’s why we’re in the predicament we’re in today,” she said.

Also this morning, Politico obtained a Senate Health Education Labor and Pension (HELP) Committee document outlining its proposal for a public plan in its legislation. The proposal would be a weaker version of the House version of the public plan, but more government-oriented than the co-op proposal. Details of the “Community Health Insurance Option” can be found here, but highlights include:

- The public plan would be an offering to the bill’s insurance exchange, and would follow the same rules as private insurers except the federal government would set reserve requirements.

- For the first three months, the government (specifically HHS) would pay the plan’s claims. This would be considered a loan to be repaid by the plan.

- The payment rates paid by the public plan would be no more than the local average of private rates, but could be less.

- There is no requirement that a health care provider participate in the plan.

Quick Hits

White House Press Secretary Robert Gibbs gives a non-committal answer (subscription) to whether the president is open to taxing employer-provided health care… the Small Business Coalition for Affordable Healthcare releases its first YouTube video… a list of other groups advertising (subscription) over the Congressional recess.