This provision of the Affordable Health Care for America Act begins by establishing that the public health option is only available through the Health Insurance Exchange and must meet all of the requirements to Exchange-participating benefits plans. A health insurance exchange is an organized marketplace where customers can purchase health insurance that is set up by the government to help insurers comply with the consumer protections or laws that are designed to ensure fair competition and the free flow of truthful information in the marketplace, compete in cost-efficient ways, and expand coverage to more people. The provision goes on to say that the secretary must establish geographically adjusted premium rates for the public option enabling the public options ability to fully finance health benefits and administrative costs. Also to negotiate rates for items and services so that the payment rates are not lower than Medicare rates but not higher than rates paid by QHBP offering entities. Finally that enrolling in this option is voluntary.
I really believe that having a health insurance exchange would be greatly beneficial to all Americans. We all know the big insurance company's have been lobbying against this public option because they believe that it is impossible to compete with the government. So, in light of this, the big insurance companies may be considered the losers because in order to compete with the government they are going to have to lower the price of their premiums, which may mean lower salaries and bonuses for the executives. I know if we had have a market where Americans can quickly shop for a health care plans, compare their benefits and prices, and choose the plan that's best for them, our nations uninsured rate would plummet. No plan should deny coverage because of a preexisting condition. All of these plans should include an affordable basic benefit package that includes prevention, and protection against catastrophic costs. I believe it is important to have the choice of a public health insurance option while allowing the ability to acquire a private plan. This will give people a better range of choices, make the health care market more competitive, and keep insurance companies on their toes.