A Public Health Insurance Plan

Strong divisions among lawmakers and interest groups have developed over whether or not a public plan should be included in health reform legislation. Supporters argue that a plan could lower administrative costs and leverage greater bargaining power to reduce health care costs for enrollees. Those opposed to a public plan say that it would not be fiscally responsible or sustainable. Opponents also argue that a new government-run plan would crowd out private insurance companies from the market and eventually lead to a universal system of government-run health care

This brief, the third in the Health Affairs/RWJF Health Policy Brief Series, explores the various public plan proposals being debated by key House and Senate committees, as well as the arguments being advanced both for and against the inclusion of a public plan. The paper provides objective, nonpartisan information on the proposal and highlights relevant research.